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Records Reveal Massive Overcharges to Government

Lawsuits prompt Government to release Medicare Advantage audits

Fred Schulte by Fred Schulte
October 14, 2022
in News
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Records Reveal Massive Overcharges to Government

Business Data Analyzing, with magnifying glass and other on the desk.

Federal health officials have agreed to make public 90 audits of private Medicare Advantage health plans for seniors that are expected to reveal hundreds of millions of dollars in overcharges to the government.

The Centers for Medicare & Medicaid Services agreed to release the records to settle a lawsuit filed by Kaiser Health News against the agency in September 2019 under the Freedom of Information Act.

“It’s incredibly frustrating that it took a lawsuit and years of pushing to make this vital information public,” said Thomas Burke, a San Francisco attorney who represented KHN pro bono.

“Transparency — on a real-time basis — should be the norm for the public to have oversight of this multibillion-dollar, taxpayer-paid program,” said Burke, a partner at Davis Wright Tremaine.

Under the settlement, CMS agreed to pay $63,000 in legal fees to the law firm and to “make its best efforts” to provide the documents over six weeks. In making the payment, the agency did not admit to wrongfully withholding the records.

CMS had no comment.

KHN filed the suit in U.S. District Court in San Francisco to obtain the audits conducted for 2011, 2012, and 2013. CMS officials have said they expect to collect more than $600 million in overpayments from the audits. The agency has disclosed the names of the health plans under scrutiny but nothing else.

The cache of federal audits and other documents should provide the most extensive look to date at a secretive government auditing program known as Risk Adjustment Data Validation, or RADV. The audit program has struggled to prevent Medicare Advantage health plans from overcharging the government.

The RADV audits check medical records to make sure patients have the diseases that health plans are being paid to treat. Past RADV audits have shown that Medicare Advantage plans often cannot document these claims.

Under the settlement, CMS will release the audit spreadsheets showing which medical diagnoses could not be confirmed but will redact the overpayment amounts. The audits for 2011 through 2013 are the most recent ones completed.

CMS is expected to decide how to compute final overpayment amounts later this year. The industry has long opposed the RADV audits, arguing the sampling methods are flawed, even though they are widely used in other types of Medicare audits.

Enrollment in the privately run alternative to original Medicare more than doubled during the past decade, passing 28 million in 2022 at a cost of $427 billion.

Many seniors choose Medicare Advantage plans because they tend to pay less out-of-pocket for them than for original Medicare. But critics argue that the plans cost taxpayers billions of dollars more than original Medicare.

KHN (Kaiser Health News) is a national newsroom that produces in-depth journalism about health issues. Together with Policy Analysis and Polling, KHN is one of the three major operating programs at KFF (Kaiser Family Foundation). KFF is an endowed nonprofit organization providing information on health issues to the nation.

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KHN (Kaiser Health News) is a national newsroom that produces in-depth journalism about health issues. Together with Policy Analysis and Polling, KHN is one of the three major operating programs at KFF (Kaiser Family Foundation). KFF is an endowed nonprofit organization providing information on health issues to the nation.

Subscribe to KHN’s free Morning Briefing.

Source: Kaiser Health News
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Fred Schulte

Fred Schulte

Fred Schulte, an investigative reporter, has worked at The Baltimore Sun, the South Florida Sun Sentinel, and the Center for Public Integrity. He is a four-time Pulitzer Prize finalist for stories including those that exposed excessive heart surgery death rates in veterans’ hospitals, substandard care by health insurance plans treating low-income people, and the hidden dangers of cosmetic surgery in medical offices. Fred has received the George Polk Award, two Investigative Reporters and Editors awards, four Gerald Loeb Awards for business writing, and two Philip Meyer Awards. The University of Virginia graduate is the author of “Fleeced!”

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Videos

Dr. Adalja shares his thoughts on the current flu season and future trends in viral infectious diseases. He talks about vaccine misinformation and what he expects to see in 2024.

Dr. Adalja is a Senior Scholar at the Johns Hopkins Center for Health Security, an Adjunct Assistant Professor at the Johns Hopkins Bloomberg School of Public Health, and an Affiliate of the Johns Hopkins Center for Global Health. His work is focused on emerging infectious disease, pandemic preparedness, and biosecurity.

https://centerforhealthsecurity.org/who-we-are/our-people/amesh-adalja-md-fidsa

Twitter: @AmeshAA

Instagram: @ameshadalja


#COVID #RSV #influenza #misinformation #disinformation #vaccines #trust
Dr. Amesh Adalja Discusses Flu Season and Trends in 2024
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A Two Headed Monster - State Attorneys General and the Drug Enforcement Agency

DEA driven production cuts of prescription opioids

by Jay K Joshi
November 15, 2023
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We highlight a figure from patient advocate, Monty Goddard's article, A Two Headed Monster – State Attorneys General and the Drug Enforcement Agency.

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