CMS Administrator: Technology Fights, Not Enables, Medicare Fraud

In a Los Angeles Times op-ed, a CMS administrator said the Obama administration has used Medicare's electronic payment system to its advantage in its fight against fraud.

Peter Budetti, deputy administrator and director for CMS' Center for Program Integrity, says the federal government is not only taking steps to fight fraud, but also steps to prevent it. A rigorous third-party review process is helping to weed out fraudulent providers from becoming Medicare participants.

Also, Mr. Budetti says the new fraud-fighting technology launched in July allows investigators to see billing patterns in real time, identify potentially fraudulent claims before they're paid, and take action quickly.

Mr. Budetti's op-ed was prompted by an Aug. 21 editorial in the Los Angeles Times that said Medicare's electronic payment system is a vulnerable payment mechanism that is easily taken advantage of by criminals.

Mr. Budetti disputed these claims, saying, "Years ago when banks and insurance companies started seeing a rise in fraud, they did not respond by shutting down their computers and reverting to cash-only transactions. Instead, they made their technology smarter."

Related Articles on Medicare Fraud:

10 Recent Allegations or Convictions of Medicare Fraud
CMS to Adopt Predictive Fraud-Fighting Technology July 1
GAO: CMS' Systems to Identify Fraud Fall Short


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