The audit found that 10 percent of the time, the government was paying for undocumented services.
Home health care companies contract with the state to provide care to Medicaid recipients.
In half of those months with problematic documentation, the home health care companies were billing the state for more hours of work than their own records showed they had provided to Medicaid recipients.
In the other half of those months, the home health care companies billed the state for particular services that records did not show had been rendered.
Seven percent of the time, the state was paying for services the state itself had not authorized.
The auditing sample also included one time when a person providing care wasn't qualified to do so; that the person receiving the care wasn't qualified for the services; or that the person receiving the care was in a nursing home and not actually in his or her own home.
State Medicaid Commissioner Nancy Atkins told federal auditor Stephen Virbitsky that DHHR concurred with his findings.
In a Sept. 12 letter to the auditor, Atkins said the state will "improve its monitoring" to ensure compliance with federal and state requirements.
Among other things, the state will do more to make sure it has the proper documentation.