CMS Proposes Further Crackdown on Medicare, Medicaid Fraud

Federal officials would gain more powers to identify Medicare and Medicaid fraud early and reduce an estimated $55 billion in improper payments each year, according to a report by USA Today.

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Under the proposed rules, to be published Thursday, CMS would:

  • Suspend payments immediately after a “credible allegation” of fraud, including tips from consumers
  • Require state Medicaid programs to stop using providers removed from Medicare, another Medicaid program or a CHIP program
  • Visit more medical firms to ensure they are legitimate
  • Rate types of medical providers by their risk for engaging in fraud
  • Require fingerprinting and criminal background checks on providers with the highest risk

Initially, the increased scrutiny would be applied to new home-health agencies and home-health equipment suppliers that are not publicly traded. Medicare and Medicaid fraud prosecutions have netted $11 billion in fines and settlements since 1997.

Read the USA Today report on healthcare fraud.

Read more coverage on healthcare fraud:

North Carolina Plans to Find More Medicaid Fraud With Electronic Reviews

Annual Reports Show Former Columbia/HCA CEO Rick Scott Repeatedly Warned of Possible Anti-Kickback Law Violations, Scott Denies Knowing

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