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The Centers for Medicaid and Medicare Services would like to welcome you to the Payment Error Rate Measurement (PERM) Overview for Medicaid and Childrens Health Insurance Program (CHIP) providers. The Improper Payments Information Act (IPIA) of 2002 (amended in 2010 by the Improper Payments Elimination and Recovery Act (or IPERA) requires the heads of federal agencies to annually review programs that may be susceptible to docHub improper payments. Both Medicaid and CHIP have been identified as programs at risk for docHub improper payments. In order to comply with IPIA and related guidance, CMS developed the Payment Error Rate Measurement, or PERM. PERM uses a 17- state rotation to measure the improper payments made in fee-for-service, managed care claims submitted in the Medicaid and CHIP programs. The 17-state rotation means that each state is measured only once every 3 years on a recurring basis. The PERM measurement then establishes an error rate for each component. It is
