More problems for state program that oversees Medicaid - WECT TV6-WECT.com:News, weather & sports Wilmington, NC

More problems for state program that oversees Medicaid

An audit shows DHHS has yet to test a $484 million computer program set up to handle Medicaid An audit shows DHHS has yet to test a $484 million computer program set up to handle Medicaid

RALEIGH, N.C. (AP) - An audit of the North Carolina Department of Health and Human Services says it has failed to fully test a new $484 million computer system scheduled to begin processing Medicaid claims on July 1.

 

The report issued by the office of State Auditor Beth Wood raises serious questions about the process used to affirm the complex NCTracks software will be ready to handle the more than $12 billion in Medicaid claims paid by the state each year.

 

NCTracks is being developed under a contact with Computer Sciences Corporation. The system was originally set to go live in August 2011 at a cost of $265 million.

 

In a written response, DHHS Secretary Aldona Wos agreed with the audit's key findings and said the agency is working hard to address the issues.

 

On Tuesday, the office that oversees Medicaid says the funding shortfall for the government health insurance program is more than $330 million.

Secretary Wos said Tuesday the shortfall has grown $85 million above the $248 million projected by Gov. Pat McCrory's administration earlier this month.

Wos' office again blamed the expanded shortfall on then-Gov. Beverly Perdue's administration - this time saying it overestimated Medicaid receipts. McCrory's agencies attributed an earlier shortfall uptick to a forecasting model error last year.

A bill in the General Assembly would give McCrory access to $400 million in unspent funds, cost savings and surplus tax collections to cover the shortfall. But that money is also supposed to cover $118 million for an outstanding drug rebate to the federal government.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

 

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