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Government Waste & Fraud
Medicare Paying for Health Care for the Dead

HCFA makes $20 million in payments for procedures allegedly performed on patients after they died! Two recent reports by the Inspector General (IG) for the Department of Health and Human Services (HHS) has found that out of a one percent sample of all Medicare claims, the HCFA paid out $20.6 million for Medicare equipment and/or services to provided to beneficiaries after they had died. They also discovered that HCFA was also paying HMO's on behalf of enrollees who've been dead for some time, not only were they paying for a recently deceased person, but some files go clear back to 1993. 

In several cases, the HHS had in their possession records containing the death notices of said beneficiaries, but yet paid out more than $8 million in improper claims for them. How can this happen you ask? "Like other federal programs, Medicare does suffer from difficult, complex management problems," said Senate Government Affairs Committee Chairman Fred Thompson (R-TN). "But in this case, Medicare has the ability to easily match claims with death notices – they just don't bother to run the match." He continues to say, "Stopping payments to providers who claim to be providing services to people who are deceased isn't rocket science, especially when your own records show they're deceased. These improper payments - many of them the result of fraud - take health care dollars away from those who need them." 

A footnote: 

Last year alone, improper Medicare payments amounted to $ 13.5 billion, or about 8 percent of the entire Medicare budget. 

* The mentioned HHS IG reports are: Review of Payments to Medicare Managed Care Risk Plans for Deceased Beneficiaries, February 2000 Report A-07-99-01283 Medicare Payments for Services after Date of Death, March 2000 Report OEI-03-99-00200
   
     

This site was last updated on: Saturday, December 18, 2004 2:19 AM