OIG achieves $29.7 million in cost avoidance

Part of the OIG’s mission of ensuring taxpayer dollars are used for their intended purpose is preventing inappropriate spending from happening in the first place. Cost avoidance results in resources being used more efficiently by deterring potentially questionable spending before it can occur.

For example, the OIG's Women, Infants and Children (WIC) Vendor Monitoring Unit (VMU) realized a cost avoidance of $259,572 in the second quarter of fiscal year 2020. This was the result of excluding vendors who violated WIC rules. The violations were discovered through covert in-store inspections, invoice audits and on-site store reviews. In the second quarter, the OIG achieved a cost avoidance of more than $29.7 million across the organization. Preventing ineligible, fraudulent and wasteful spending in health and human services programs was accomplished by the following divisions:

  • Inspections - WIC vendor monitoring: $259,572
  • Benefits Program Integrity - Client disqualifications: $1,892,350
  • Medicaid Program Integrity - Medicaid provider exclusions: $1,707,973
  • Medical Reviews - Pharmacy Lock-In: $691,888
  • Third Party Recoveries - Front-end claims denials: $25,074,440
  • Peace Officers - Disability determination services: $93,120
  • Total cost avoidance: $29,719,343

More information about the OIG's work is available in the latest OIG Quarterly Report at https://tinyurl.com/TxOIGQRs.