Corporate Compliance

IA senator wants CMS to respond to DMEPOS problem

Compliance Monitor, April 22, 2009

On April 17, Senator Chuck Grassley issued a public letter to CMS calling for the agency to respond to a recent OIG report that identified millions in Medicare overpayments to durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) suppliers.
In the letter, Grassley said the medical device suppliers and other related businesses owe Medicare $352 million for 2005 and $402 million for 2006, but CMS has no mechanism in place to recover the money.
Grassley also expressed concern with a “possible systemic vulnerability” in the enrollment and oversight of DMEPOS suppliers.
Grassley closed the letter with three questions for CMS:
1. When a potential DMEPOS supplier or home health agency applies to participate in the Medicare program, are they required to disclose any relationship with other companies currently in default to the Medicare program?

2. What policies are in place to recoup losses after a default, and if so please provide copies?

3. What enhanced authorities does CMS require to protect the program?

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