AUSTIN, Texas (AP) — The state office responsible for investigating Medicaid fraud and waste is finalizing a $90 million contract with an Austin company that has little experience with Medicaid spending.
The inspector general’s office for the Texas Health and Human Services Commission is arranging the deal with 21CT, a federal defense contractor unknown in the Medicaid fraud business prior to 2012. That’s the year 21CT was first asked to analyze a massive amount of data associated with $28.3 billion in Medicaid spending.
Reports say Texas Medicaid Director Kay Ghahremani pitched 21CT’s technology as a game-changer for the state.
But the pending contract comes amid scrutiny of the inspector general’s office.
It has more than 1,100 fraud cases it’s investigating and each case takes an average of three years to complete.