Secretary of state’s audit outlines way for Oregon to save millions

SALEM, Ore. (KTVZ) -- The Oregon Secretary of State Audits Division found that leveraging a free service from the U.S. Treasury could help identify millions of dollars in potential improper payments and savings in Medicaid and other health and human services programs, according to an audit released Wednesday.

The findings are outlined in the report entitled: “Using the U.S. Treasury’s Do Not Pay System for Health and Human Services Programs Will Save Taxpayers Money.”

The Audits Division was the first state audit organization in the nation to be granted access to the U.S. Treasury’s Do Not Pay Business Center. Do Not Pay helps to identify, prevent and recover improper payments in federally funded, state-administered programs.

"Our office’s national reputation for performing analytics work was one of the reasons we were the first in the nation to be granted access," Secretary of State Bev Clarno's office said in Wednesday's announcement.

The Audits team identified a process weakness that put Oregon, and the rest of the nation, at risk of automatically renewing Medicaid coverage for a small number of deceased individuals. The audit found that using Do Not Pay would mitigate the risk of improper payments being made on behalf of deceased individuals.

By using Do Not Pay to identify ineligible recipients, they said, "we identified over $790,000 in savings, generating a return on investment of about $286 in savings for each $1 spent researching data matches."

Auditors also found ways in which Do Not Pay’s data analytics can provide assurance that processes are working effectively. In addition to the return on investment noted above, Do Not Pay identified a data entry error that would have likely resulted in over $6 million in potential improper payments, had the issue not been found.

“The Audits Division continues to lead with innovative audit work, which makes it apparent why they have received national acclaim,” Clarno said.

“I am encouraged to see the Department of Human Services and Oregon Health Authority working to gain access to these important tools that will help our state save money and resources. In programs like Medicaid, every penny counts, and I am glad that Do Not Pay has helped identify these savings.”

Read the full report on the Secretary of State website (https://sos.oregon.gov/audits/Pages/default.aspx).