Review of Incorrect Medicare Payments Made to Uniformed Services Treatment Facilities

EXECUTIVE SUMMARY:

This final report represents the results of a joint review by the Offices of Inspectors General of the Department of Health and Human Services and the Department of Defense (DOD) required by the Defense Authorization Act (DAA) of 1993 to review and determine the amount of incorrect Medicare payments made to the Uniformed Services Treatment Facilities (USTF) during the period October 1, 1986 through December 31, 1989. The DAA also required that, as part of this joint review, we address possible procedures to avoid future billing inaccuracies. The DOD estimated that only $7.1 million in Medicare Part A benefit payments was for covered USTF services. We jointly determined, however, that DOD owes the Health Care Financing Administration about $7.8 million and have recommended a financial adjustment based on this amount. We also recommended procedural improvements to preclude billing inaccuracies and problems in the future.

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