Industry Notes:
New Anti-Fraud Law Could Delay Your Medicare Payments
Published on Wed Sep 08, 2010
Law requires Medicare to use 'predictive modeling' to target claims for pre-pay scrutiny. A provision buried in the Small Business Lending Act could slow your Medicare cash flow to a trickle next year. The legislation, which was enacted Sept. 27, mainly addresses credit issues for small businesses. But one provision requires the Centers for Medi-care & Medicaid Services to use "predictive modeling" software to verify suspicious claims before paying them. The model is based on the ones credit cards use, notes the Miami Herald. Suspicious claims would be flagged for investigation before payment. "Our health care system is rife with fraud," says Sen. George LeMieux (R-Fla.), who authored the bill. "We need to use up-to-date technologies to stop improper payments. Putting predictive modeling in place will save taxpayers money and make Medicare a better program," LeMieux says. "Unfortunately, Florida is ground zero for health care fraud and I am hopeful [...]