Medicare Blog

how can healthcare organzations prevent medicare fraud

by Avis Marquardt Published 2 years ago Updated 1 year ago
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The creation of a standardized, rigorous registration process for Medicare and Medicaid

Medicaid

Medicaid in the United States is a federal and state program that helps with medical costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and personal care services. The Health Insurance As…

providers is one of the greatest opportunities for fraud prevention. CMS has implemented the Automated Provider Screening (APS) system in an effort to identify high-risk providers; meanwhile, each state has its own system for onboarding.

Full Answer

How can healthcare organizations protect themselves from healthcare fraud?

May 05, 2015 · Through its extensive work with agencies, Dun & Bradstreet developed three best practices to proactively address healthcare fraud: 1. Deploying Standardized Registration Processes The creation of a standardized, rigorous registration process for Medicare and Medicaid providers is one of the greatest opportunities for fraud prevention.

How can we prevent Medicare and Medicaid provider fraud?

Apr 08, 2019 · According to CMS, patients can prevent Medicare fraud by Protecting their Medicare and Social Security numbers, just like credit card Not providing Medicare card or number to anyone except their doctor or people they know Not accepting any free medical care Educating oneself about Medicare and knowing one’s rights to use them effectively

What are the Medicare fraud and abuse laws?

care fraud and the need for aggressive and appropriate intervention. Providers and health care organizations involved in health care fraud risk being excluded from participating in all Federal health care programs and losing their professional licenses. designated health services. Medicare Fraud Strike Force. Medicare Fraud Strike Force

How does a compliance program help prevent healthcare fraud and abuse?

Jun 29, 2020 · Prevention of Medicare and Medicaid fraud can be accomplished through several strategies at policy, practice, and grassroots levels. Efforts to curb this fraud at the policy level can be especially useful in combating identity theft and drug diversion.

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What is healthcare fraud?

According to CMS, healthcare fraud involves the following: Knowingly submitting, or causing to be submitted, false claims or submitting misrepresentations to acquire claims reimbursement from payers for which no entitlement exists.

Can healthcare providers be investigated for fraud?

Without processes in place to detect and prevent fraudulent activities, healthcare providers could face an investigation that may cost them their reputation and revenue. However, developing appropriate healthcare fraud and abuse prevention policies and compliance programs may be difficult for provider organizations.

Can hospitals compensate for care management?

Similarly, hospitals cannot compensate providers for care management and coordination efforts. "Fraud and abuse laws may serve as an impediment to robust, innovative programs that align providers by using financial incentives to achieve quality standards, generate cost savings, and reduce waste.".

Is the federal government cracking down on healthcare fraud?

While providers may or may not intend to commit healthcare fraud and abuse crimes, the federal government is as strict as ever with cracking down on fraud schemes. HHS recently reiterated its commitment to preventing healthcare fraud and abuse.

Does HHS prevent fraud?

HHS recently reiterated its commitment to preventing healthcare fraud and abuse. The federal department stated last year that CMS implemented a proactive approach to fraud protection, eliminating its previous pay-and-chase method. The federal department now uses predictive analytics to prevent false medical bills before providers receive payments.

Why does the federal government use predictive analytics?

The federal department now uses predictive analytics to prevent false medical bills before providers receive payments. CMS also upped its efforts to screen providers properly for enrollment in federal healthcare programs.

Why is a compliance program important?

Addressing documentation, coding, and billing processes to avoid misconduct. While a compliance program is the foundation for healthcare fraud and abuse prevention, providers should also consider improving their medical billing and coding processes. Clinical documentation is the basis upon which payers reimburse providers for their services.

What is program integrity and fraud control?

Program integrity and fraud control must start in undergraduate medical education and remain an explicit component of residency mentoring, which is the job of medical school deans, department chairs, and division directors and preceptors.

What are the 4 categories of CMS program integrity violations?

The 4 categories of CMS program integrity violations can result from unintentionally false or mistaken documentation submitted for reimbursement or from negligent or intentionally false documentation. Billing errors and mistakes, misclassification of a diagnosis or procedure, or improper documentation can indicate lack of program integrity education. 16, 17, 18 Inaccurate coding or errors in documentation can result from improper or incomplete interaction with the patient’s electronic health record (EHR) if the physician merely copies and pastes text, if the EHR self-populates from previous encounters, or if the algorithm prompts the physician to offer the patient potentially unnecessary or inappropriate services. 16, 17 When do these types of behaviors become fraud?

Is there a measure of fraud in health care?

Although no precise measure of health care fraud exists, those who exploit Federal health care programs can cost taxpayers billions of dollars while putting beneficiaries’ health and welfare at risk. The impact of these losses and risks magnifies as Medicare continues to serve a growing number of beneficiaries.

What is heat in Medicare?

The DOJ, OIG, and HHS established HEAT to build and strengthen existing programs combatting Medicare fraud while investing new resources and technology to prevent and detect fraud and abuse . HEAT expanded the DOJ-HHS Medicare Fraud Strike Force, which targets emerging or migrating fraud schemes, including fraud by criminals masquerading as health care providers or suppliers.

Is CPT copyrighted?

CPT codes, descriptions and other data only are copyright 2020 American Medical Association. All Rights Reserved. Applicable FARS/HHSAR apply. CPT is a registered trademark of the American Medical Association. Applicable FARS/HHSAR Restrictions Apply to Government Use. Fee schedules, relative value units, conversion factors and/or related components are not assigned by the AMA, are not part of CPT, and the AMA is not recommending their use. The AMA does not directly or indirectly practice medicine or dispense medical services. The AMA assumes no liability of data contained or not contained herein.

Can you give free samples to a physician?

Many drug and biologic companies provide free product samples to physicians. It is legal to give these samples to your patients free of charge, but it is illegal to sell the samples. The Federal Government has prosecuted physicians for billing Medicare for free samples. If you choose to accept free samples, you need reliable systems in place to safely store the samples and ensure samples remain separate from your commercial stock.

What is the OIG self disclosure protocol?

The OIG Provider Self-Disclosure Protocol is a vehicle for providers to voluntarily disclose self-discovered evidence of potential fraud. The protocol allows providers to work with the Government to avoid the costs and disruptions associated with a Government-directed investigation and civil or administrative litigation.

What is the OIG?

The OIG protects the integrity of HHS’ programs and the health and welfare of program beneficiaries. The OIG operates through a nationwide network of audits, investigations, inspections, evaluations, and other related functions. The Inspector General is authorized to, among other things, exclude individuals and entities who engage in fraud or abuse from participation in all Federal health care programs, and to impose CMPs for certain violations.

Is healthcare fraud spreading?

Despite efforts to hasten its growth, healthcare fraud is rapidly spreading. Although policies have been put in place to reduce healthcare fraud, we, the taxpayers, may be the most effective deterrent. There are many things you can do to help prevent healthcare fraud, which we will cover later.

Is healthcare fraud easy to commit?

Unfortunately, as one type of fraud is discovered and prosecuted another, or ten more, pop up in its place. Like taking candy from a baby, healthcare fraud is just too lucrative and too easy to commit.

What is fraud practice #2?

Fraudulent Practice #2: Performing Unnecessary Treatments or Procedures. This occurs when a service provider performs an unnecessary treatment or procedure on you solely to have an excuse to bill insurance. Yes, as repulsive as this practice is, it happens all the time, from diagnostic tests to surgeries.

Has Obamacare helped?

Obamacare Reforms Have Helped, But Not Enough. With the passage of Obamacare, many reforms are in the works to combat healthcare fraud. Stricter requirements and screenings for providers and suppliers, especially in those areas that have been rife with fraud, have been put into effect.

How many providers failed to meet the new standards?

Out of about a million providers over 470,000 failed to meet the new standards. Moratoriums have been placed on specific areas of the country and certain types of new providers allowed into the system.

National and State Health Care Fraud Laws

Several laws on the national and state level exist in order to combat health care fraud. These laws keep providers accountable for committing unethical acts within their communities.

How Health Care Providers Can Detect and Prevent Fraud

Health care providers can implement several precautions to help detect and prevent fraud and abuse from taking place.

Seek Guidance from the Industry Leaders in Health Care Law

While most organizations and providers operate ethically, they can unintentionally fail to comply with industry regulations. This leads to criminal and civil investigations that can negatively impact your business’s finances and reputation.

How much money does fraud cost in healthcare?

According to the National Health Care Anti-Fraud Association, fraud accounts for $70 to $234 billion a year – about $190 to $640 million per day. (per LexisNexis) Fraud, waste and abuse are prominent topics of discussion as well as significant sources of confusion among individual physician or small group practices.

Does the Office of Inspector General require expensive advice?

However, complying with the Office of the Inspector General’s (OIG’s) voluntary fraud, waste and abuse guidance should not require expensive advice or overly burdensome documentation. The benefits of doing so can be significant. By implementing a well-designed compliance program, a practice can:

What are the benefits of implementing a well-designed compliance program?

By implementing a well-designed compliance program, a practice can: The approach to detecting, identifying and preventing fraud, waste and abuse is shifting and has become a priority not just to Medicare and Medicaid, but to all health insurance companies.

What is the OIG compliance program?

The federal registry has stated that “the creation of compliance program guidance is a major initiative of the OIG in its effort to engage the private [healthcare] community in preventing the submission of erroneous claims and in combating fraudulent conduct.”.

Does OIG recommend a full scale compliance program?

OIG guidance for physicians does not suggest that physician practices implement all seven components of a full-scale compliance program as identified below. Instead, the guidance emphasizes a step-by-step approach to developing and implementing a voluntary compliance program.

Is the guidance document mandatory?

The guidance should not be viewed as mandatory or as an all-inclusive discussion of the advisable components of a compliance program. Rather, the document is intended to present guidance to assist physician practices that voluntarily choose to develop a compliance program.

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Understanding Healthcare Fraud and Abuse Definitions and Regulations

Implementing A Compliance Program to Identify and Prevent Healthcare Fraud

  • Developing a strong compliance program is key to preventing healthcare fraud and abuse activities. A strong compliance program should “establish a culture within a hospital that promotes prevention, detection and resolution of instances of conduct that do not conform to Federal and State law, and Federal, State and private payer healthcare program ...
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Addressing Documentation, Coding, and Billing Processes to Avoid Misconduct

  • While a compliance program is the foundation for healthcare fraud and abuse prevention, providers should also consider improving their medical billing and coding processes. Clinical documentationis the basis upon which payers reimburse providers for their services. Inaccurate and inappropriate coding can lead to potential healthcare fraud and abuse investigations. Com…
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Healthcare Fraud Laws Complicate Value-Based Purchasing Implementation

  • Under value-based purchasing models, providers may seek business relationships with other organizations to fill care gaps. Controlling care across the continuum also allows providers to monitor patient outcomes and costs to maximize value-based reimbursement. However, the Physician Self-Referral Law and Anti-Kickback Statute raise questions for providers who believe …
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