Corporate Compliance

CMS reduces improper Medicare payments

Compliance Monitor, November 29, 2007

Recent error rate reductions have led to approximately $11 billion less in improper payments over the last three years, according to CMS.

CMS also announced that the Medicare fee-for-service error rate has declined from 14.2 percent in 1996, when the Medicare improper payment rate was first reported, to the current 3.9 percent in 2007. These results show that using more detailed data and analysis to identify and eliminate proper payments is working, says CMS.

CMS intends to work closely with the states to follow a similar approach with the Medicaid error rate measurement. CMS will continue its partnership with the states to publish a full-year error rate in November 2008.

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