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Medicare Claims: Commercial Technology Could Save Billions Lost to Billing Abuse

AIMD-95-135 Published: May 05, 1995. Publicly Released: May 05, 1995.
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Highlights

Pursuant to a congressional request, GAO reviewed the Health Care Financing Administration's (HCFA) potential use of commercial technology to detect Medicare billing errors, focusing on whether: (1) commercial systems could reduce Medicare costs; and (2) HCFA development approach is likely to generate savings comparable to that of commercial systems.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Health and Human Services The Secretary of Health and Human Services should direct the Administrator, HCFA, to require Medicare carriers to use a commercial system to detect code manipulation when processing Medicare claims for physician services and supplies.
Closed – Implemented
HCFA acquired a license for a commercial system to detect code manipulation when processing Medicare claims for physician services and supplies. In October 1998 HCFA implemented the use of this software by Medicare claims processing contractors.

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Topics

Claims processingCommercial productsCost effectiveness analysisFraudHealth insurance cost controlManagement information systemsMedical expense claimsMedicareOverpaymentsProgram abuses