Corporate Compliance

GOV’T AUDIT INSIDER: Washington state should revise per diem rates, says OIG

Healthcare Auditing Weekly, April 12, 2005

Washington state should revise per diem rates, says OIG

From January 2003 through June 2004, United Healthcare of Ohio received Medicare overpayments of $13,128 for 20 beneficiaries that United incorrectly reported as institutionalized, according to an OIG audit report. United officials stated the incorrect claims were due to administrative and clerical errors and because institutions did not always provide correct information to verify the institutionalized status of the beneficiaries. The OIG recommends that United refund $13,128 to the federal government and ensure that capitation payments for beneficiaries reported as institutionalized are claimed in accordance with federal laws and regulations.

During the audit, the OIG did the following:

  • Reviewed applicable federal criteria and United's policies and procedures

  • Identified beneficiaries classified as institutionalized during the audit period

  • Identified the months in which United reported the institutional status to CMS

  • Contacted institutions to verify the beneficiaries' institutionalized status

  • Reviewed hospital admission and discharge dates

  • Calculated overpayments for each incorrectly reported beneficiary

    Click here to read the audit report, "Review of Medicare Payments for Beneficiaries With Institutional Status at United Healthcare of Ohio," (A-07-04-01011) issued March 18.

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