Home

Medicare Paid $20 Million for Deceased Beneficiaries

Wed, 03/29/2000 - 12:00am — Karen Stevenson
Description: 

HCFA's Office of the Inspector General (HHS/OIG) has found that Medicare carriers paid over $20 million in 1997 for services dated after the death of the beneficiary. About $12 million was paid before the date of the beneficiary was entered into the system, but $8 million was paid even though the information in the system already indicated that the beneficiary was deceased. The majority of these claims were for durable medical equipment (DME). The OIG concluded that the Medicare contractors had insufficient procedures in place to track and monitor payments to deceased beneficiaries. The OIG recommended that post-payment review procedures be implemented by contractors, since payments made immediately subsequent to the death of the beneficiary may be processed before the date of death is entered into the system. The OIG also recommended that HCFA policy require an automatic edit process in payment systems which would deny all payments for service dates subsequent to the date of death.

HCFA's Office of the Inspector General (HHS/OIG) has found that Medicare carriers paid over $20 million in 1997 for services dated after the death of the beneficiary. About $12 million was paid before the date of the beneficiary was entered into the system, but $8 million was paid even though the information in the system already indicated that the beneficiary was deceased. The majority of these claims were for durable medical equipment (DME). The OIG concluded that the Medicare contractors had insufficient procedures in place to track and monitor payments to deceased beneficiaries. The OIG recommended that post-payment review procedures be implemented by contractors, since payments made immediately subsequent to the death of the beneficiary may be processed before the date of death is entered into the system. The OIG also recommended that HCFA policy require an automatic edit process in payment systems which would deny all payments for service dates subsequent to the date of death.