November 18, 2014 — The Texas agency charged with investigating Medicaid fraud is finalizing a $90 million contract for Medicaid fraud detection software.
of software licenses and services from the company, 21CT, according to a statesman.com story .
Austin-based 21CT is a federal defense contractor that had no experience with Medicaid before 2012, when the company was asked to use its Torch software to analyze a massive amount of data associated with $28.3 billion in Medicaid spending, according to a KVUE.com story .
The Texas Health and Human Services Commission Office of Inspector General (OIG) has been criticized for collecting only $5.5 million in the last year following a Texas Sunset Commission staff report that cited hundreds of millions of dollars of Medicaid fraud.
The Sunset Commission report found that Torch software had identified only $41 million in Medicaid fraud for 2014, according to a Texas Dentists for Medicaid Reform story .