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OIG: CMS overpaid Anthem $3.4 million in Medicare Benefit funds

Share this…FacebookPinterestTwitterLinkedin Picture: Sam Edwards/Getty Photographs The Division of Well being and Human Providers’ Workplace of the Inspector Normal has…

By Staff , in Medicare , at May 25, 2021

Picture: Sam Edwards/Getty Photographs

The Division of Well being and Human Providers’ Workplace of the Inspector Normal has discovered that the Facilities for Medicare and Medicaid Providers overpaid Anthem roughly $3.4 million because of the insurer allegedly failing to adjust to sure federal coding necessities.

In conducting an audit of the Medicare Benefit group, OIG targeted on seven teams of high-risk prognosis codes. The target was to find out whether or not chosen prognosis codes that Anthem submitted to be used in CMS’s danger adjustment program complied with federal necessities.

The OIG sampled 203 distinctive enrollee-years with the high-risk prognosis codes for which Anthem acquired increased funds for 2015 via 2016. The company restricted the evaluate to the parts of the funds that have been related to these codes, which totaled $599,842.

When wanting on the seven high-risk teams lined by the audit, many of the chosen prognosis codes that Anthem submitted to CMS to be used within the latter’s danger adjustment program didn’t adjust to the federal necessities. For 123 of the 203 enrollee-years, the prognosis codes that Anthem submitted to CMS weren’t supported within the medical information and resulted in $354,016 of internet overpayments for the 203 enrollee-years.

These errors occurred, OIG stated, as a result of the insurance policies and procedures that Anthem needed to detect and proper noncompliance weren’t at all times efficient. Primarily based on the pattern outcomes, OIG estimated that Anthem acquired not less than $3.47 million of internet overpayments for these high-risk prognosis codes in 2015 and 2016.


Beneath the Medicare Benefit program, CMS makes month-to-month funds to MA organizations in response to a system of danger adjustment that is determined by the well being standing of every enrollee. Accordingly, MA organizations are paid extra for offering advantages to enrollees with diagnoses related to extra intensive use of healthcare assets than to more healthy enrollees who could be anticipated to require fewer assets.

To find out the well being standing of enrollees, CMS depends on MA organizations to gather prognosis codes from their suppliers and submit these codes to CMS. Some diagnoses are at increased danger for being miscoded, which can lead to overpayments.

The OIG really helpful that Anthem refund the $3.47 million in overpayments to the federal authorities, and establish any related situations of noncompliance that occurred earlier than or after the audit interval. The company additionally desires the insurer to reinforce its compliance procedures to deal with prognosis codes which are at excessive danger for being miscoded.

Anthem, for its half, disagreed with OIG’s discovering and suggestions, questioning the methodology and whether or not federal necessities have been correctly executed. Anthem additionally stated the report mirrored misunderstandings of the authorized and regulatory necessities underlying the MA program.


Insurers are doing properly within the Medicare Benefit market, and customers additionally just like the plans that include extra advantages to unique Medicare. A Medicare Benefit examine printed in December discovered that extra customers selected MA plans for 2021 because of the plans’ supplemental advantages, together with these for telehealth and COVID-19.

That is no shock, as non-public plans have pushed the supplemental advantages of their MA plans via tv and different promoting, together with quite a few mailings, in a approach CMS doesn’t do for conventional Medicare.

Of those that selected an MA plan due to supplemental advantages, 35% cited COVID-19 supplemental advantages particularly, whereas 27% cited telehealth advantages, the report stated.

In a Morning Seek the advice of ballot, beneficiaries reported close to common satisfaction with Medicare Benefit’s protection and supplier networks, the latter being the oft-cited downside of the plans, which have been in comparison with the narrow-network HMO plans of the Nineteen Eighties.

Twitter: @JELagasse
E-mail the author: [email protected]

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