RALEIGH, N.C. -- The head of North Carolina's Medicaid's office says he's confident contracts with outside companies to help detect program fraud and abuse ultimately will help reap significant savings, despite a critical state audit last month.
Mike Watson with the Division of Medical Assistance told a legislative oversight committee Wednesday the agency agreed with the recommendations in State Auditor Beth Wood's review related to contract language and meeting goals.
The audit found the state had recovered overpayments at a rate much lower than initially projected for contracts with IBM and SAS Institute and another firm. But Watson said the IBM software alone had helped identify close to $200 million in questionable billings.
Legislators said they were surprised by contract language that allowed firms to get paid even if funds weren't recouped.