KRS 205.6318: Cabinet to establish integrated system to enhance program integrity of

Medical Assistance Program.

The Cabinet for Health and Family Services shall review the available technology

associated with the medical assistance system to determine which techn ology is best

suited to enhance program service operation, monitoring ability, and fraud and abuse

detection. This shall include the ability to provide on -line access to data files to allow

cross-analysis of provider and recipient utilization patterns. The cabinet shall by

promulgation of administrative regulations, pursuant to KRS Chapter 13A, establish an

integrated system to enhance program integrity, using a combination of staff, computer

technology, and contractual services to identify potential fraud, abuse, and misutilization

of services. This system shall:

(1) Utilize statisticians, program specialists, accountants, nurses, and other medical

specialists to review the Medical Assistance Program to identify patterns of

provider and recipient behavior t hat contributes to unnecessary or abusive use of

program services;

(2) Utilize computer capability through contractual services or the purchase of

computer software to detect the unbundling of claims and other techniques used by

providers to enhance reimbursement;

(3) Impose utilization controls on the expenditures in respiratory, physical, speech, and

occupational therapy and durable medical equipment provided to nursing -home

residents, through the use of established medical criteria or preauthorization of

ancillary therapies;

(4) Establish state audit and edit requirements that exceed the federal audit and edit

requirements;

(5) Obtain access to necessary data from the fiscal agent of each medical provider;

(6) Review the efficiency and effectiveness of th e fraud and abuse detection and

investigation process to determine whether changes shall be made;

(7) Direct that fraud and abuse detection and investigation components shall be active

in initiating investigations. The fraud and abuse detection, investigat ion, and

prosecution functions shall be integrated, with access to information in files

maintained by the Department for Community Based Services and the Department

for Medicaid Services;

(8) Review penalties for deterrent value for medical providers that are found to have

abused Medicaid regulations and statutes; and

(9) Provide for a proactive effort to reduce costs for institutionalized program

participants. Program officials shall seek to implement innovative or experimental

demonstration programs that aim to control costs.