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Seel: Anti-fraud measures can be implemented

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…

To read more on this item plus all the stories in the Oct. 28 Yellow Sheet Report, go to (Yellow Sheet Subscription Required).

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