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Medicare: Program Remains at High Risk Because of Continuing Management Challenges

GAO-11-430T Published: Mar 02, 2011. Publicly Released: Mar 02, 2011.
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Highlights

In the February 2011 High-Risk Series update, GAO continued designation of Medicare as a high-risk program because its complexity and susceptibility to improper payments, combined with its size, have led to serious management challenges. In 2010, Medicare covered 47 million people and had estimated outlays of $509 billion. The Centers for Medicare & Medicaid Services (CMS) has estimated fiscal year 2010 improper payments for Medicare fee-for-service and Medicare Advantage of almost $48 billion. This statement focuses on the nature of the risk in the program, progress made, and specific actions needed. It is based on GAO work developed by using a variety of methodologies--including analyses of Medicare claims, review of policies, interviews, and site visits--and information from CMS on the status of actions to address GAO recommendations.

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Budget obligationsClaims processingContract administrationContract oversightEntitlement programsErroneous paymentsFee-for-service plansHealth care programsInternal controlsMedicareOverpaymentsPatient care servicesPerformance measuresProgram evaluationProgram managementSurveysPatient safetyProgram costs