The Office of Inspector General (pdf) has released a report indicating CMS has not collected almost 80 percent of the overpayment amounts identified in a 30-month span of OIG audit reports.
In the 30 months ended March 31, 2009, OIG found Medicare overpayments totaling $416.3 million. As of Oct. 8, 2010, CMS reported collecting only $84.2 million of that total, and OIG also could not verify CMS has actually collected its reported amount.
CMS said it did not collect the other $332.1 million due to time constraints. The stature of limitations for CMS to collect on an overpayment from a hospital or other provider is three years.
OIG officials criticized CMS' overpayment collection results and said CMS did not provide its recovery audit contractors with "adequate guidance for collecting overpayments" and did not have a good system in place to monitor RAC collection efforts. OIG recommended CMS to pursue legislation to extend the statute of limitations, ensure CMS' audit tracking system is updated and accurate and verify the $84.2 million has actually been collected, among others.
In response, CMS said it is "committed to collecting the overpayments identified in OIG audit reports," and it concurred on many of the OIG's recommendations, including pursuing an extension of the statute of limitations. However, CMS officials said when one of its RACs reports a collection related to an OIG audit, CMS "considers this proof" the collection occurred, and it would be "extremely difficult" to verify the $84.2 million collection figure.
In the 30 months ended March 31, 2009, OIG found Medicare overpayments totaling $416.3 million. As of Oct. 8, 2010, CMS reported collecting only $84.2 million of that total, and OIG also could not verify CMS has actually collected its reported amount.
CMS said it did not collect the other $332.1 million due to time constraints. The stature of limitations for CMS to collect on an overpayment from a hospital or other provider is three years.
OIG officials criticized CMS' overpayment collection results and said CMS did not provide its recovery audit contractors with "adequate guidance for collecting overpayments" and did not have a good system in place to monitor RAC collection efforts. OIG recommended CMS to pursue legislation to extend the statute of limitations, ensure CMS' audit tracking system is updated and accurate and verify the $84.2 million has actually been collected, among others.
In response, CMS said it is "committed to collecting the overpayments identified in OIG audit reports," and it concurred on many of the OIG's recommendations, including pursuing an extension of the statute of limitations. However, CMS officials said when one of its RACs reports a collection related to an OIG audit, CMS "considers this proof" the collection occurred, and it would be "extremely difficult" to verify the $84.2 million collection figure.
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