December 23, 2013

GOV. MALLOY: ADVANCED ANTI-FRAUD TECHNOLOGY COULD SAVE TAXPAYERS NEARLY $170 MILLION

(HARTFORD, CT) - Governor Dannel P. Malloy today announced that Connecticut taxpayers could save nearly $170 million over this biennium under a new initiative designed to identify and stop fraud in state programs, including the Medical Assistance program.

The Office of Policy and Management (OPM) and Department of Social Services (DSS) have entered into a three-year contract with 21CT, Inc. to implement a program to detect fraud, waste, and abuse in the DSS Medical Assistance Program.

"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," said Governor Malloy. "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."

Connecticut spends billions of dollars for health care services through Medicaid, and the program's caseload is expected to grow under the federal Affordable Care Act. Governor Malloy, OPM, and DSS have made the reduction of fraud a priority. The initiative is part of the state budget negotiated with, and passed by, the General Assembly earlier this year.

OPM Secretary Ben Barnes added that massive data sets and ever-changing fraud schemes make it extremely challenging for state agencies to keep up with this work on their own. "21CT is the right company for the task. They are technologically advanced, innovative, and by far brought the most value to the state for the cost of the contract," Barnes said. "Our eight million dollar annual investment in this effort will likely bring us tens of millions of dollars in savings and recoupments."

The state budget anticipates $65 million in recoveries and cost-avoidance from the anti-fraud effort this year, and $104 million next year. It is anticipated that over time, additional state agencies and their data will be added to this initiative 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," said DSS Commissioner Rod Bremby. "Signing this contract enhances our ability to do that."

** On the web : RFP for Fraud Detection and Prevention Services
** Download : Agreement between the State of Connecticut and 21CT, Inc.

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For Immediate Release: December 23, 2013

Facebook: Office of Governor Dannel P. Malloy