On October 21, state officials presented a North Dakota Office of the State Auditor (OSA) audit before the North Dakota Legislative Oversight Committee examining the state’s Medicaid fraud investigation efforts.  The OSA audit found that the North Dakota Department of Human Services (DHS) does not adequately pursue potential Medicaid fraud and criticized North Dakota for being the only state to opt out of a federal program offering funding for an independent Medicaid fraud detection unit. 

From the executive summary:

We determined the Department of Human Services (DHS) needs to make changes to promote a culture in which identifying potential Medicaid fraud and abuse is a high priority. Improvements are needed to ensure an effective surveillance and review process is established to protect the integrity of the Medicaid program. The Surveillance and Utilization Review System (SURS) Unit should be organized outside the control of other Medicaid operations. A review is also necessary to ensure adequate resources exist to perform required functions.

Full Report: Performance Audit Report: Medicaid Provider and Recipient Fraud and Abuse (PDF | 141KB)  

North Dakota Office of the State Auditor. (2010). Performance audit report: Medicaid provider and recipient fraud and abuse.