INPUT Forecasts IT Investments to Help Eliminate $67 Billion in Waste, Fraud and Abuse

State and Local Governments to Grow Their Investment to $1.1 Billion by 2014 for IT Initiatives Reducing WFA

February 2, 2010

RESTON, Va.--(BUSINESS WIRE)--INPUT, the authority on government business, today announced the release of its research report, State & Local Investment in Anti-Waste, Fraud, and Abuse (WFA) Solutions, 2009-2014. This report indicates that cash strapped state and local governments across the country will invest more than $4.7 billion within the next five years to clamp down on waste, fraud and abuse (WFA) within benefits programs, including Medicaid and Social Services.

Investments in business intelligence (BI), audit and recovery (A&R) technologies, preventative measures such as training, business process design and detection systems, are among the key strategies state and local governments are implementing to reduce WFA. State and local government agencies that implement these technologies may recover some of the $67 billion in annual WFA among the five biggest federal benefits programs: Medicaid, Unemployment Insurance, Temporary Assistance to Needy Families, Housing Assistance and Food Stamps.

Unnecessary costs and spending, deliberate misrepresentation and excessive or improper use impacts all levels of government. INPUT projects that the federal government will disburse $500 billion annually over the next five years for states to administer. With an average of 13 percent of these funds lost annually to WFA, INPUT predicts that state and local governments will invest $600 million in A&R solutions, and $225 million in BI and prevention solutions in 2010 for the five biggest federal benefits programs.

Questions answered by the INPUT report include:

• What is the model technology framework to combat waste, fraud and abuse?
• Which benefits program offers the best example for incorporating A&R and BI technologies into a comprehensive anti-WFA initiative?
• Which benefits program is the largest consumer of IT to reduce WFA?
• What are the future trends in WFA technology?

INPUT will host a webinar led by INPUT analysts Chris Dixon and Angie Petty on "State & Local Investment in Anti-Waste, Fraud, and Abuse Solutions for Major Programs, 2009 – 2014," on Wednesday, February 16, 2010, at 2 p.m. EST. Please visit http://tiny.cc/INPUTwfawebinar for further details on this event or to register.

Report Authors: Chris Dixon, manager, State & Local Analysis and Angie Petty, senior analyst, Industry Analysis at INPUT, are available for media inquiries.

Report Availability: State & Local Investment in Anti-Waste, Fraud, and Abuse (WFA) Solutions, 2009-2014 is available on INPUT’s Web site at the following link: http://tiny.cc/INPUTWFAreport.

About INPUT

INPUT is the authority on government business. Established in 1974, INPUT helps companies develop federal, state, and local government business and helps public sector organizations achieve their objectives. More than 2,000 member organizations, including small specialized companies, new entrants to the public sector, and the largest government contractors and agencies, rely on INPUT for the latest and most comprehensive procurement and market information, consulting, powerful sales management tools, and educational & networking events. For more information about INPUT, visit www.input.com or call 703-707-3500.

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