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COST: Medicare Fraud Gets Increased Scrutiny

November 16, 2009 - 3:44pm

The government paid $47 billion (that's billion with a B) in false or questionable Medicare claims last year, according to a new federal report obtained by the Associated Press.

The report shows a dramatic increase in Medicare fraud from previous years. In 2008, the government paid an estimated $17 billion in improper claims. So what caused this number to nearly triple in the past year? The most likely culprit is not more fraud attempts, writes the AP, but the increased scrutiny on Medicare claims. The Department of Health and Human Services's new  stricter methodology is part of the Obama Administration's effort to crack down on Medicare fraud.

The report mentioned several new government strategies for combating fraud, but also warned that challenges lie ahead, reports the AP. We've written before about initiatives to combat Medicare fraud, such as the Health Care Fraud Prevention and Enforcement Action Team (HEAT). The new report suggested that such "aggressive actions" on the part of the government had yet to yield up significant savings, but were still in their early stages, according to the AP. In his testimony to the Senate Judiciary Committee, Deputy HHS Secretary Bill Corr estimated that anti-fraud, waste, and abuse activities had returned about $13.1 billion to the Medicare trust fund.

Fraudulent or questionable Medicare claims come in many varieties. False claims can include everything from prescriptions from dead doctors, treatments for imaginary patients, and requests for things like special shoes for diabetics that have had their legs amputated, according to the AP.

In an effort to reduce fraud and make way for "honest budgeting," writes the AP,

Obama is expected to announce new initiatives this week to help crack down on Medicare fraud, including a government-wide Web site aimed at providing a fuller account of health-care spending and improper payments made by various agencies. The Centers for Medicare and Medicaid Services also will launch an interactive Web site next month that will allow users to track Medicare payment information.

With the Medicare budget already strained, it’s important that every available dollar is going toward providing care for those in need. Increased scrutiny of Medicare payments and initiatives like HEAT are a step forward in protecting and preserving Medicare.