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Medicare: Statutory Modifications Needed for the Peer Review Program Monetary Penalty

HRD-89-18 Published: Mar 30, 1989. Publicly Released: Mar 30, 1989.
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Highlights

GAO reviewed the Department of Health and Human Services' (HHS) Office of the Inspector General's (OIG) actions on monetary penalties recommended by peer review organizations (PRO) against hospitals and physicians for improper or unnecessary health care services to Medicare beneficiaries.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
The Senate Committee on Finance, the House Committee on Energy and Commerce, and the House Committee on Ways and Means should develop legislation amending section 1156 of the Social Security Act to set a fixed upper limit on the size of monetary penalties in lieu of the current cost-based limit.
Closed – Not Implemented
The HHS Inspector General has made a similar recommendation. HHS also supports the recommendation and included it as part of its annual legislative proposals. Bills have been introduced in the House and Senate that would implement the recommendation. No action has resulted.
The Senate Committee on Finance, the House Committee on Energy and Commerce, and the House Committee on Ways and Means should develop legislation amending section 1156 of the Social Security Act to set a fixed upper limit on the size of monetary penalties in lieu of the current cost-based limit.
Closed – Not Implemented
The HHS Inspector General has made a similar recommendation. HHS also supports the recommendation and included it as part of its annual legislative proposals. Bills have been introduced in the House and Senate that would implement the recommendation. No action has resulted.
The Senate Committee on Finance, the House Committee on Energy and Commerce, and the House Committee on Ways and Means should develop legislation amending section 1156 of the Social Security Act to set a fixed upper limit on the size of monetary penalties in lieu of the current cost-based limit.
Closed – Not Implemented
The HHS Inspector General has made a similar recommendation. HHS also supports the recommendation and included it as part of its annual legislative proposals. Bills have been introduced in the House and Senate that would implement the recommendation. Congress, however, has not acted.

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Topics

Administrative remediesContract performanceFines (penalties)Health care cost controlHospital care servicesMedicarePatient care servicesPhysiciansPolicy evaluationQuality assurance