[Congressional Record Volume 143, Number 74 (Tuesday, June 3, 1997)]
[Extensions of Remarks]
[Page E1080]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        THE REDUCTION IN MEDICARE OVERPAYMENT COSTS ACT OF 1997

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                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                         Tuesday, June 3, 1997

  Mr. STARK. Mr. Speaker, I am pleased to introduce the Reduction in 
Medicare Overpayment Costs Act of 1997, which imposes an administrative 
fee on providers who submit inaccurate Medicare claims.
  The American taxpayer spends nearly $200 billion on Medicare every 
year. However, billions are lost due to inaccurate claims or 
overpayment. This burdens the Nation with serious financial costs, 
threatening the quality of medical care and endangering the long-term 
sustainability of the Medicare Program.
  The Reduction in Medicare Overpayment Costs Act of 1997, which was 
introduced in the Senate by Senator McCain, will help eliminate 
overpayments by imposing an administrative fee to offset recovery 
costs. The purpose is to discourage doctors from submitting false or 
misleading claims and to prevent hospitals from excessively 
overestimating Medicare costs.
  The act promotes these purposes in three ways. First, the act imposes 
an up to 1 percent administrative fee if the repayment is more than 30 
days late. Second, the act will impose an up to 1 percent 
administrative fee if the provider overestimates Medicare needs by 
greater than 30 percent. Third, the act requires the issuance of a 
report detailing which services typically result in overpayments.
  This act is needed to crack down on incorrect or inflated claim 
practices in Medicare. I urge my fellow members to vote in favor of 
this bill to ensure claim accuracy by Medicare providers.

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