Medicaid Record Retention Requirements

The Health Insurance Portability Act passed by congress in 1996 set a universal standard for handling physical and electronic medical records. The law restricts access to medical records and standardizes the length of time for record retention before they can be destroyed or erased. Medicaid is a federally-sponsored health insurance plan that is independently administered by each state. As a result, the record retention regulations for Medicaid may differ from HIPAA standards and may also vary according to state.

Record Retention Facilities

• Medical records must be completed and maintained on every patient who comes into the medical facility for both inpatient and outpatient care. The Centers for Medicare & Medicaid Services requires that the medical facility utilizes a system of author identification and record maintenance to ensure the complete security and confidentiality of all records. Protection of electronic records is mandatory by the use of a user-restricted database, password protection and electronic encryption, if necessary. Most states require the facility to keep hard copies of records in locked filing cabinets and some states may also require the use of fire-safe storage for some medical facilities.

Record Retention Staff

• Pursuant to regulations established by the both the Health Insurance Portability Accountability Act and the Centers for Medicare & Medicaid Services, sufficient facilities must provide accommodation for the handling and storage of medicaid medical records. A hospital or doctor's office must have an appropriately sized administrative staff to handle the flow of medicaid files and ensure each file is complete, securely filed and retrieved in a timely fashion. In addition, the administrative staff must receive the proper training in the handling of medical records, such as medical coding procedures, filing and how to protect a patient's confidentiality by restricting the release of records to unauthorized parties.

Length of Storage

• Standard regulations require the medical facility to retain the original or legally reproduced duplicates of all medical records for at least six years. Gateway Health Plan indicates some regulations may require providers servicing a Medicaid or Medicare plan to retain all medical records, financial records and source reports for at least ten years. Some Medicaid records are necessary to assist with audits conducted by the Department of Health and Human Services or the Comptroller General. Some medical facilities extend the storage of Medicaid records as a safety measure against possible lawsuits, while some states may also have varying requirements for the medicaid record retention period.