Fraud Fact Sheet

Preventing, Detecting and Eliminating fraud

Overview

Fraud forces all Texans to pay more for goods and services, including the critical services provided by government to those in need. Governor Perry believes that all state agencies and employees have a responsibility to prevent, detect and eliminate fraud. Texas has implemented several successful fraud prevention programs, but opportunities for improvement still exist.

Texas Fights Fraud

In the last legislative session, Gov. Perry signed into law House Bill 1743 and House Bill 2292 which established the Office of Inspector General at the Health and Human Services Commission to fight fraud. The Governor also signed into law Senate Bill 104 which increased the authority of the Board of Medical Examiners.

The Department of Criminal Justice has enhanced its employee training on workers' compensation fraud and initiated a special operation to investigate workers' compensation fraud. The Texas Workforce Commission has created a new Public Integrity Division and updated technology to improve fraud detection.

The Governor also directed state agencies to form an interagency workgroup to develop common components for fraud prevention and elimination plans.

Impact of the Executive Order

The Executive Order directs that specific steps be taken to eliminate fraud at state agencies, in the unemployment insurance program and in the health care system, including workers' compensation.

Protect taxpayer dollars.
Eliminating fraud will free up more funds for critical state services without adding to the tax burden on Texas families. Each state agency shall:

• Designate a contact person for its fraud prevention activities;
• Review existing rules, policies, organizational structure and statutes to identify changes needed to better detect and fight fraud;
• Adopt a fraud prevention and reduction program which includes risk assessment tools, best practices and common components developed by an interagency workgroup.

The Texas Workforce Commission shall:

• Identify best practices and new strategies being employed across the nation to fight unemployment insurance fraud;
• Address weaknesses in its processes and computer systems;
• Examine the possibility of using private collection agencies to collect overpayments

All state agencies that operate programs or regulate participants of the health care system are directed to do the following:

• Use all available resources to pursue Medicaid fraud cases;
• Coordinate and cooperate with other state agencies to create seamless and consistent disciplinary systems for health care professionals.

• Disseminate best practices information to assist insurers, law enforcement personnel, prosecutors and others;
• Increase the public profile of its efforts to fight fraud.

• Increase the public profile of its efforts to address fraud and abuse;
• Improve its use of technology to detect fraud.