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For Immediate
Release
12/16/09
  - (running time 1 hour 19 minutes)
Senate Hearing Explores Potential Welfare Fraud
and Abuse
Joint panel hears from Auditor General, DPW Secretary
Harrisburg – The Senate Majority Policy Committee,
chaired by Sen. Ted Erickson (R-26), and the Senate Public Health and Welfare
Committee, chaired by Sen. Pat Vance (R-31), held a joint public hearing today
on potential fraud and abuse in state welfare programs.
The hearing focused on potential fraud and
abuse identified through audits undertaken by the Department of the Auditor
General. An August 2009 audit found that 45 percent of the Special Allowance
program payments reviewed were issued without documented justification. In
January 2009, the Auditor General announced that an audit of eligibility
determinations found that the Department of Public Welfare made $3.3 million in
improper payments, $3.1 million of which were made to managed care firms on
behalf of ineligible Medicaid recipients.
"We appreciate that the Department of Public
Welfare is working to implement changes in the Special Allowance program based
on the recommendations in the Auditor General's reports," Erickson said. "The
program is valuable in the effort to move those who receive welfare benefits
into job training and education, with the goal of permanent employment and
self-sufficiency."
"We should thank Auditor General Jack Wagner
for bringing these audits to our attention and Secretary Richman for proposing
changes in regulations to strengthen the Special Allowance program," Vance said.
"We look forward to providing input on these modifications and working together
to improve our responsibility to the state's taxpayers."
The joint committee heard from Auditor
General Jack Wagner and Secretary of Public Welfare Estelle Richman. On the
matter of Special Allowance -- which allow welfare recipients to cover expenses
related to finding work, such as clothing and child care -- the Auditor General
called for requiring receipts for all purchases, among other steps.
Secretary Richman said new procedures being
implemented will include such documentation. She added that it was important to
note that the Auditor General's report identified only "potential" fraud and
abuse, not actual, and that the findings are helping to tighten oversight within
DPW.
Regarding the Medical Assistance audit, the secretary challenged the
methodology and analysis, but did agree with the recommendation to strengthen
electronic checks to more quickly identify if a recipient has an increase in
income without changing employers.
Contact:
Michele Hansarick (Sen. Erickson)
717
787-1350
Tracy Polovick (Sen. Vance)
717-787-8524
Additional Information:
Reforming
Government
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