Corporate Compliance

OIG: $718 million inappropriately paid out for mental health services in 2003

Healthcare Auditing Weekly, May 1, 2007

The OIG released a report last week that determines the extent to which Medicare Part B mental health services met Medicare's coverage criteria and were coded correctly in 2003.

The OIG found that 47% of mental health services allowed by Medicare in 2003 did not meet program requirements, resulting in approximately $718 million in improper payments. Miscoded and undocumented services accounted for 26% and 19% of all mental health services in 2003, respectively. Medically unnecessary services and services that violated the "incident to" rule each accounted for 4% of all mental health services in 2003.

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