OIG: North Carolina did not meet federal standards for Medicaid claims processing

HHS Office of Inspector General determined the State of North Carolina, which contracts with Falls Church, Va.-based CSRA to operate its Medicaid claims processing systems, did not implement adequate federal information security requirements for safeguarding data, according to a recent audit.

The review assessed whether the state implemented appropriate security controls over the CSRA's information system as they related to the North Carolina Medicaid program claims processing for fiscal year 2016. The federal agency determined the state did not ensure the contractor implemented adequate information security, as required by the federal government.

Although the audit did not identify any vulnerabilities had been exploited, it noted unauthorized access to and disclosure of information or disruption of operations is possible.

"In addition, without proper safeguards, systems are not protected from individuals and groups with malicious intent to obtain access in order to commit fraud or abuse or launch attacks against other computer systems and networks," the audit reads.

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