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Legislative audit finds OIG for Medicaid failing to provide adequate oversight, proposes major governance changes

Government Operations Interim Committee · October 15, 2025
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Summary

A legislative audit concluded the Office of Inspector General for Medicaid services has not provided sufficient oversight of the state's $5 billion-plus Medicaid program, and auditors recommended structural reforms ranging from new governance to dissolution of the office.

Legislative auditors presented a performance audit that sharply criticized the Office of Inspector General (OIG) for Medicaid services, saying it has not adequately fulfilled its legislative oversight mandate.

Audit managers said the OIG—s work is heavily weighted toward compliance and claims audits and that only a small portion of its effort examines Medicaid performance measures such as patient outcomes, program effectiveness,…

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