Medicare Compliance & Reimbursement

Penalties:

Expansion of Civil Monetary Penalties On The Horizon

OIG is planning to add to the list of infractions.

If keeping track of the laws and regulations governing Medicare compliance seemed challenging earlier, worse is yet to come. The HHS Office of Inspector General (OIG) has floated a suggestion in a May 12 Proposed Rule to allow civil monetary penalties for some other infractions, too.

Background: The government has the right to impose civil monetary penalties or exclusion for different types of Medicare and Medicaid fraud, and these penalties can be substantial. Depending on the infraction discovered at your practice, the penalties can vary widely.

New Proposal Would Expand Law

In its May 12 Federal Register posting, the OIG proposed changes to the Civil Monetary Penalties regulations to add penalties, assessments, and exclusions for the following infractions:

  • Failure to grant the OIG timely access to records;
  • Ordering or prescribing while excluded;
  • Making false statements, omissions, or misrepresentations in an enrollment application;
  • Failure to report and return an overpayment;
  • Making or using a false record or statement that is material to a false or fraudulent claim.
  • This means that you could potentially face financial penalties, or even exclusion, if the OIG requests your records and you don’t submit them in a timely manner, among other reasons listed above.

Proposal Boosts Overpayment Penalties

The OIG’s proposal also suggests increasing the amount that you’ll be fined if you fail to report an overpayment within the later of A) 60 days after the date the overpayment is identified or B) the date of any corresponding cost report due. The proposed default penalty for this in the OIG’s new document is listed as “up to $10,000 for each day a person fails to report and return an overpayment by the deadline.”

You have until July 11 to comment on the proposed rule. To read the complete proposal, visit oig.hhs.gov/authorities/docs/2014/fr-79-91.pdf.