The state could save nearly $170 million over two years under a new initiative designed to identify and stop fraud in state programs, including medical assistance.
The state”™s Office of Policy and Management and Department of Social Services have entered into a three-year contract with Texas-based 21CT Inc. to detect fraud, waste and abuse in the DSS medical assistance program.
State ledgers anticipate $65 million in recoveries and cost-avoidance from the anti-fraud effort this year and $104 million next year.
Connecticut taxes support health care services through Medicaid and the program”™s caseload is expected to grow under the federal Affordable Care Act. Gov. Dannel P. Malloy, OPM and DSS have made the reduction of fraud a priority, according to a statement. The initiative is part of the state budget passed by the General Assembly earlier this year.
“We owe our residents and businesses the assurance that our programs have the integrity they demand, while dedicating resources to people who really need them,” Malloy said. “Whether beneficiaries or providers, people who defraud Medicaid are engaging in criminal activity. They should be caught and prosecuted. We will work diligently to recoup what they stole.”
Additional state agencies and their data could be added to the initiative eventually with a resultant expansion of the scope of work.
“While the vast majority of the funding that goes to assistance is important and needed, we must remain vigilant and pursue people who abuse the system,” DSS Commissioner Rod Bremby said. “Signing this contract enhances our ability to do that.”