Medicare Compliance & Reimbursement

Industry Note:

OIG Adds Statistical Sampling To Work Plan

If you thought claims reviews were getting tougher, you were right. Medicare auditors with the ability to pull statistical samples may soon strike fear in providers' hearts.

The HHS Office of Inspector General (OIG) is tackling the topic of statistical sampling in a newly announced Work Plan topic. "Medicare program integrity contractors are authorized to use statistical sampling to identify and recover improper payments. Providers may contest these statistical estimates through the administrative appeals process," the OIG says on its website.

"If a statistical estimate is overturned during the administrative appeals process, then the provider is liable for any overpayment upheld in the sample rather than the full, extrapolated total. The difference between these amounts is often substantial," indicates the federal watchdog in its guidance.

Focus: "The Medicare Administrative Contractors (MACs) and Qualified Independent Contractors (QICs) are responsible for the first two levels of the appeals process and thus play a critical role in deciding which extrapolations will be upheld," the OIG notes. "We willdetermine whether the MACs and QICs are reviewing statistical estimates in an appropriate and consistent manner as part of the fee-for-service appealprocess."

The OIG expects to issue the report next year, it says at https://oig.hhs.gov/reports-and-publications/workplan/summary/wp-summary-0000274.asp.

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