OIG: 11 Medicaid Agencies Allow Outsourcing Administrative Tasks to Offshore Contractors

Eleven state Medicaid agencies allow outsourcing of some administrative functions to contractors based offshore, such as enrolling beneficiaries and determining what services are eligible for coverage, and seven are currently engaged in the practice, according to a report from the Department of Health and Human Services Office of Inspector General released April 14.

The memorandum report, “Offshore Outsourcing of Administrative Functions by State Medicaid Agencies” (OEI-09-12-00530), said that requirements within the 11 Medicaid agencies (Florida, Massachusetts, Mississippi, Montana, New Mexico, North Dakota, Pennsylvania, Rhode Island, Tennessee, Missouri and New Jersey) all called for maintaining Business Associate Agreements ...