Two state agencies have signed a three-year contract with a Texas company to provide fraud, waste and abuse detection services for state programs, Gov. Dannel Malloy’s office announced.
The Office of Policy and Management and the Department of Social Services will expend $8 million a year for the services of 21CT Inc., an Austin company that counts the U.S. Army, Department of Defense, Navy, Department of Homeland Security and various companies among its clientele.
21CT will use its analytics technology to look for signs of Medicaid fraud.
The state budget is counting on $65 million in cost recoveries and avoidance this year and $104 million next year.
The Medicaid program is going to have more claims to process after an enrollment influx from Obamacare, and larger data sets and changing schemes are making it more difficult to catch fraudulent activity, according to officials.
“Our eight million dollar annual investment in this effort will likely bring us tens of millions of dollars in savings and recoupments,” OPM Secretary Benjamin Barnes said in a statement.
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