Gov. Mike Beebe today announced the appointment of Jay Shue as the state’s first Medicaid Inspector General. The position was created via legislation from Sen. David Sanders. Shue has directed the Medicaid Fraud Control Unit in the state attorney general’s office since 2007.

Shue will be in charge of program integrity and operate independently of the Department of Human Services. Despite talk of “crazy checks” and Medicaid Cadillacs, fraud on the beneficiary side is negligible. The big bucks are on the provider side; Sanders has been candid about this and if that is the inspector general’s focus the position could be a useful piece of a larger reform effort to reduce costs.

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“I think the office of Medicaid Inspector General is important,” Sanders said in a phone interview. “Having the office independent and not in the bureaucracy signifies that the state has made the decision that looking at waste, fraud and abuse in a focused way is a priority. Jay knows a lot about the Medicaid program. He knows first-hand about Medicaid fraud and has prosecuted it. Having that experience obviously will be helpful.”

Sanders said that the office of the Inspector General would “help providers comply with the law and rules and regulations. That’s where funds are typically misspent. They’ll offer guidance and correction to providers, and they’ll recover misspent funds.”

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Comment from DHS Director of Communications Amy Webb: “Jay’s depth of knowledge about Medicaid and the integrity he’s shown during his career will make the transition for our staff much easier because they will know they are in very capable hands. We look forward to working with him and strengthening the fight against fraud.”

Press release from Beebe’s office after the jump.

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