Corporate Compliance

CMS Boston official outlines agency's program integrity changes

Compliance Monitor, September 15, 2004

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Medicare will shift certain duties normally held by its fiscal intermediaries and carriers over to specialty contractors, and fraud and abuse monitoring is one example, a top CMS official said September 10 in a talk to members of the Health Care Compliance Association's New England region.

James Bryant, associate regional administrator at the Division of Medicare Financial Management in Boston, outlined CMS' intentions, changes, and challenges to its program integrity initiatives, including the following list of Medicare-reform components:

  • Medicare-approved drug discount card: this will be valid until January 2006, when the new drug benefit goes into effect
  • Prescription drug benefit for Part B: administering the benefit may result in "fits and starts," Bryant said. "We haven't administered a drug benefit before."
  • New preventive benefits: CMS is looking to track beneficiaries that have taken advantage of the options, including screenings for diabetes
  • Administration and tracking of the Medicare Advantage program
  • Increased reimbursement, especially for care in rural settings
  • Transfer of appeals to HHS from the Social Security Administration

    "Each of the major components have a significant impact on program integrity and create challenges as well," Bryant said.

    He also discussed the following:

    Expect increase in data analysis for error rate program
    CMS will also increase its use of data analysis to tailor program integrity efforts, including drug card usage data and its Comprehensive Error Rate Testing (CERT) Program. This program will help CMS determine a national error rate of paid claims by provider, bill category, and Medicare contractor. Bryant noted the increased fraud and abuse issues with power scooters and motorized wheelchairs as a wakeup call to the government to find better ways to use data. "If we had focused our energy better, and mined data better, we might have been able to find the problem sooner."

    Specialty contractors come to the forefront
    CMS will use a new specialty contractor for the CERT program, and a new source in Region A (New England) to handle fraud and medical review to allow the existing contractor to focus on claims processing issues and education. Another change is the opening of special program integrity offices in "hot" locations, including Miami-"which was a hotbed of misconduct in the DME (durable medical equipment) area"-and Los Angeles, which had spikes in home health-related and other types of fraud.

    CMS to increase emphasis and support of compliance programs
    The agency wants to "incent, encourage, and reward" providers for being effective. Bryant cited the compliance effectiveness pilot and subsequent best practice guidelines as an example.

    Editor's note: Look to upcoming issues of Strategies for Health Care Compliance for more news and analysis of CMS initiatives.



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