In fiscal year 2020, the Medicare fee-for-service improper payment rate was 6.3 percent, representing $25.7 billion. In fiscal 2019, the improper payment rate was 7.3 percent, representing $28.9 billion.
CMS said it is the fourth year that the improper payment rate has been below 10 percent.
The improper payment rate decline is due to the agency’s effort to identify root causes of improper payments and implement action plans to prevent them, CMS said. Specifically, the agency is working to reduce provider burdens, proactively identify vulnerabilities and leveraging new technology.
“President Trump made a clear commitment to protect Medicare for our seniors, and to do that we must ensure that fraud and abuse doesn’t rob the program of precious resources,” said CMS Administrator Seema Verma. “From the beginning this administration has doubled down on our commitment to protect taxpayer dollars and this year’s continued reduction in Medicare improper payments is a direct result of those actions.”
More articles on healthcare finance:
‘COVID’ fee showing up on medical bills across the country
Hospitals lose billions in hit to medical tourism
‘2020 was truly a baptism by fire’: Tampa General CFO reflects on his first year
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.