Posts Tagged ‘OIG’

AP: CMS Ignored Scam Warnings

Monday, November 16th, 2009

The Associated Press reports that for three years, the Centers for Medicare & Medicaid Services (CMS) repeatedly ignored internal watchdog warnings about swindlers stealing millions of dollars by scamming several programs, documents show. CMS received roughly 30 warnings from inspectors over three years during the Bush and Obama administrations but didn’t respond to half of them, even after repeated letters, according to records provided to The Associated Press by U.S. Sen. Charles Grassley’s office.

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OIG Releases 2010 Work Plan

Monday, October 5th, 2009

The Office of Inspector General (OIG) released, Oct. 1, its annual Work Plan for fiscal year 2010. The Work Plan outlines activities the OIG intends to initiate or continue in its ongoing endeavor to right wrongs in Health and Human Services (HHS) programs and operations, such as Medicare. Read more »

OIG Questions Wheelchair Supplier Payments

Tuesday, September 8th, 2009

In 2007, Medicare reimbursement for power wheelchairs far exceeded durable medical equipment (DME) supplier acquisition costs, according to an Office of Inspector General (OIG) report.

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OIG Eyes Unqualified Help in Incident-to

Monday, August 17th, 2009

The Office of Inspector General (OIG) is worried physicians are billing for services provided by unqualified help, so it just audited Medicare incident-to claims for 2007. What it found made the agency ask the Centers for Medicare & Medicaid Services (CMS) to review its incident-to policies. Read more »

OIG Applies Pressure on Support Surface Claims

Monday, August 17th, 2009

More than three-quarters of all pressure reducing support surface claims in the first half of 2007 did not meet Medicare coverage criteria, totaling an estimated $33 million in inappropriate payments, according to an August 2009 Office of Inspector General (OIG) report entitled “Inappropriate Medicare Payments for Pressure Reducing Support Surfaces.”

Pressure reducing support surfaces are used for the care or prevention of pressure ulcers. A pressure ulcer, also known as a bedsore or decubitus ulcer, is an area of skin that breaks down when a person stays in one position for too long.

The Centers for Medicare & Medicaid Services (CMS) categorizes support surfaces into the following three groups:

  • Group 1 support surfaces are generally designed to be placed on top of standard hospital or home mattresses and include pressure pads and mattress overlays (foam, air, water, or gel).
  • Group 2 support surfaces, which can be special mattresses used alone or placed directly over a bed frame, include powered air flotation beds, powered pressure reducing air mattresses, and nonpowered advanced pressure reducing mattresses.
  • Group 3 support surfaces are complete bed systems, known as air-fluidized beds, which simulate the movement of fluid by circulating filtered air through silicone-coated ceramic beads.

The OIG focused its investigation on group 2, which accounted for 80 percent of all support surface payments in 2007.

Support surfaces are covered under Medicare Part B as capped rental Durable Medical Equipment (DME) providing Medicare coverage criteria are met. The OIG, however, found in its review of 363 claims for group 2 support surfaces submitted in the first half of 2007 that:

  • 38 percent of claims were undocumented;
  • 22 percent of claims were medically unnecessary;
  • 17 percent of claims had insufficient documentation; and
  • 3 percent of claims had other billing errors.

Many claims did not meeting supplier documentation requirements because:

  • the supplier delivered the support surface before obtaining the physician order;
  • the supplier did not have a physician order;
  • the supplier was missing proof of delivery; or
  • the physician order was not dated.

Despite the lack of proper documentation the OIG found in 80 percent of the 363 claims it sampled, all but one included modifier KX Requirements specified in the medical policy have been met.

Remember: Modifier KX should only be used to indicate a DME claim meets Medicare coverage criteria and adequate documention exists. Since the definition of modifier KX differs depending on the Local Coverage Determination (LCD), suppliers should review recently revised LCDs carefully.

To ensure claims for group 2 support surfaces meet Medicare coverage criteria and are paid appropriately, the OIG recommends in its report for CMS to conduct additional prepayment and postpayment medical reviews of group 2 support surface claims; educate suppliers and health care providers about Medicare coverage criteria; review modifier KX usage; and conduct additional statistical analyses to monitor group 2 support surfaces payments. The OIG also recommends in the report that CMS “take appropriate action” regarding claims found to be inappropriate in the review. CMS concurred with these recommendations.

See Appendix A in the OIG report for detailed DME Medicare Administrative Contractor (MAC) LCD coverage and payment rules and supplier documentation requirements.

OIG Questions Ultrasound Claims

Monday, August 3rd, 2009

The rapid increase of ultrasound services nationwide has Medicare watchdogs on the alert. Health care practitioners who submit Part B claims for technical and professional ultrasound services can expect added scrutiny. A recent Office of Inspector General (OIG) report provides insight as to what Medicare Administrative Contractors (MACs) will soon be on the lookout for when reviewing imaging service claims.

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OIG: Physicians Generally Miscode POS

Monday, August 3rd, 2009

A recent Office of Inspector General Investigation (OIG) audit finds physicians generally code the place of service (POS) incorrectly on claims they submit to Medicare Part B carriers.

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OIG: Chemo Admin Claims Slip Through System

Thursday, July 2nd, 2009

The Office of Inspector General (OIG) is recommending the Centers for Medicare & Medicaid Services (CMS) do more to ensure Medicare Part B claims for chemotherapy administration services are appropriate.

This recommendation was prompted after the OIG was unable to determine whether Medicare appropriately paid for Part B services billed as chemotherapy administration from 2005 to 2007 because of “insufficient” data.

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HEAT “Takes Down” Medicare Fraud Ring

Monday, June 29th, 2009

Federal agents arrested 53 people in Detroit, Miami, Denver, and New York City, June 24, for allegedly scheming to defraud the government of more than $50 million in false Medicare claims. Physicians, medical assistants, health care executives, and beneficiaries were among the accused for various Medicare fraud offenses, including conspiracy to defraud the Medicare program, criminal false claims, and violations of the anti-kickback statutes.

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OIG to Recover $2.4B in First Half of FY2009

Friday, June 12th, 2009

The Department of Health and Human Services (HHS) Office of Inspector General (OIG) submitted its semiannual report to Congress, reporting an expected $2.4 billion in recoveries the first half of the fiscal year. Recoveries were made from providers, drug companies, other agencies, and even four states.

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