Rep. Carl Seel tells our reporter that, while JLBC is technically correct that the Health and Welfare BRB (Laws 2009, 3rd Special Session, Chapters 3 and 10) did not have the statutory changes necessary to implement the anti-fraud mechanisms at AHCCCS under the federal false claims act, there was a provision he said he quietly slipped into the General Government BRB (Laws 2009, 3rd Special Session, Chapter 7) that will still allow anti-fraud computer programs to be installed.
The language, in Section 36 of the bill, requires ADOA to contract with a software vendor that can demonstrate its software can save the state money through a variety of means, including fraud reduction, provided the contract with the vendor stipulates the third-party will be paid through the savings the state realizes. “If we demonstrate a fraud, we don’t need to pay the bill. In that sense, we should be able to realize the $50 million easily,” Seel said.
One note on the language in the BRB: The vendor must show that the cost-savings software “is capable of being implemented in every state agency,” which may be a tall order, given the age of many of the systems used by state agencies…
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