Audit reveals lax oversight for bureau of workers’ comp
June 8, 2007
The Toledo Blade reports that an internal audit of the Ohio Bureau of Workers’ Compensation (BWC) reveals a significant lack of spending oversight that may have cost the agency millions. The Bureau’s top auditor said that it’s unclear if the $637 million that passed through the BWC’s prescription drug program since 2002 was properly spent by ACS State Healthcare, the outside company hired to administer pharmacy benefits for the state’s injured workers. BWC money flowed into an account managed by ACS along with funds from 12 other customers nationwide, a system that raised concerns after the audit found ACS hadn’t verified banking statements against accounting records of BWC funds. Besides causing what the audit called a “significant” risk of loss or misappropriation of BWC funds, the system may also increase the risk that providers and injured workers would be paid erroneously, late, or not at all. The 44-page audit offers other criticisms of the company’s practices, including failure to return over $300,000 in uncashed checks, conduct on-site reviews of pharmacies, and collect rebates on drugs with no generic equivalent on the agency’s behalf, a practice that could save the bureau about $9 million annually. The report also included a scathing indictment of the agency’s management and operations, the focal point of scandal for over two years.
For full story, see: http://toledoblade.com/apps/pbcs.dll/article?AID=/20070608/NEWS24/706080355/-1/NEWS
$216 MILLION LOST IN OHIO BWC FRAUD SCANDAL
June 15, 2007 - Cleveland Plain Dealer
For the full story, see: http://www.gruhin.com/ BWC Fraud 216 Million Lost.pdf
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