Corporate Compliance

Government creates two false DMEPOS to test CMS enrollment process

Compliance Monitor, August 6, 2008

Government investigators posed as potential fraudsters and were able to obtain Medicare billing numbers, according to a report released by the Government Accountability Office (GAO). The operation was designed to show holes in CMS’s enrollment process for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS).
Investigators working for the GAO set up two fictitious DMEPOS companies and applied for Medicare enrollment. The applications were originally denied due to lack of inventory, but, according to the report, half-hearted phone messages from an investigator posing as a wholesale supplier was enough to satisfy CMS.
Both of the phony companies were issued Medicare billing numbers, which they could have used to submit millions worth in false claims.
To read the full GAO report, click here.


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