The Centers for Medicare & Medicaid Services (CMS) reports that the rate of Medicare fee-for-service payment errors more than doubled in FY09, increasing to 7.8 percent, or $24.1 billion, as compared with 3.6 percent in 2008. CMS attributes the increase to changes in the methodology for reviewing Medicare claims for inpatient hospital services.
In addition, the baseline composite Medicare Advantage error rate jumped from 10.6 percent to 15.4 percent, or $12 billion, in FY09 with no changes in methodology.
In all, at least $54.2 billion in erroneous payments were made by Medicare or Medicaid in FY09, according to data released by the White House Office of Management and Budget.
“As we move forward in our review of the Medicare and Medicaid error rate data, we expect to be able to determine if there are specific trends that can better help us identify weaknesses in our programs or systems,” said Acting CMS Administrator Charlene Frizzera in a press release. “It’s important that we continue to work closely with doctors, hospitals, and other healthcare providers to make sure they understand and follow the more comprehensive fee-for-service requirements.”
