RALEIGH, N.C. (AP) — Using outside companies to help detect Medicaid program fraud and abuse ultimately will reap significant savings for the state of North Carolina, despite a recent audit critical of contract terms and the initial yields, the state Medicaid director said Wednesday.
Mike Watson with the Division of Medical Assistance stood by the long-term efficacy of entering into agreements with firms such as IBM Corp. and SAS Institute while speaking to a government watchdog panel within the General Assembly hearing about the audit by State Auditor Beth Wood.
"I think it's going to pay off," Watson said after his presentation to the Joint Legislative Program Evaluation Oversight Committee. "There's going to be a very positive return on investment."
The report from Wood's office three weeks ago found the state had recovered overpayments at a rate much lower than initially projected. The software and other analytics bought from IBM and SAS was projected to uncover $81 million combined in improper payments, but less than 1 percent of that amount had been actually recovered by the end of January, Wood said.
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