MARCH 17, 2000

Medi-Minutes Moods Sour over  Medicare Audit According to a new audit, Medicare overpayments to health providers rose by 7%, from $12.6 billion in 1998 to $13.5 billion last year. About 8% of last year’s $169.5 billion paid to fee-for-service providers was overpayment. "Unsupported or medically unnecessary services remain pervasive problems," said Inspector General June Gibbs. The report also showed an increase in over-billings by physicians, medical equipment companies, and home healthcare providers. Gibbs suggested that the rise in overpayment rate is statistically insignificant. But lawmakers were not happy. "We’ve made a little slip here; $13.5 billion in losses is unacceptable," said Senator Tom Harkin (D-IA). Even less happy was the American Medical Association, which called the audit "irresponsible grandstanding." According to Dr. Nancy Dickey, "Medicare hassles and overly aggressive billing audits are souring physicians on the Medicare program."  Source: Associated Press 3-10-2000