Legislators Look to Smart-Card Technology to Help Cut Medicaid Fraud

State legislators are considering a new Medicaid smart card intended to reduce the amount of fraud in the joint state and federal program.

A bill, A-4062/S-2894, released by the Assembly Health and Senior Services Committee yesterday, would create a pilot in which Medicaid recipients would have an identification card that can be inserted into a computer’s USB port, allowing healthcare providers to access their records instantly. Patient information is stored on a flash drive.

The state has explored other ID cards, but a program that used swipe cards didn't reduce fraud because doctor’s offices rarely had the equipment to read the cards.

State officials have cited Medicaid fraud as a major concern. State Comptroller Matthew Boxer’s office recovered $122.8 million in improper Medicaid spending in the fiscal year that ended in June, while the attorney general’s office has an entire unit devoted to the problem.

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