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<classification authority="sudocs">GA 1.13:AIMD-98-91</classification>
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 <subject>Health care costs</subject>
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 <subject>Medical expense claims</subject>
 <subject>Claims processing</subject>
 <subject>Commercial products</subject>
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 <title>Medicare Billing: Commercial System Could Save Hundreds of</title>
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<abstract>More than three years after GAO recommended that Medicare acquire
commercial software to detect inappropriate billings--which could save
hundreds of millions of dollars each year--the Health Care Financing
Administration (HCFA) has tested the software and plans to install it.
Incorrect billings, fraudulent and otherwise, cost Medicare about $1.7
billion in improper payments in 1997. This report analyzes HCFA&apos;s
progress in testing and acquiring a commercial system for identifying
inappropriate Medicare bills, the consequences of HCFA&apos;s initial
management decisions, and its current plans for immediate
implementation. GAO summarized this report in testimony before Congress;
see: Medicare Billing: Commercial System Will Allow HCFA to Save Money,
Combat Fraud and Abuse, by Joel C. Willemssen, Director of Civil
Agencies Information Systems Issues, before the Subcommittee on
Oversight and Investigations, House Committee on Commerce.
GAO/T-AIMD-98-166, May 19 (12 pages).</abstract>
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<note>Letter Report</note>
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 <topic>Commercial products</topic>
 <topic>Health insurance cost control</topic>
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 <topic>Civilian Health and Medical Program of the Department of</topic>
 <topic>Veterans Affairs</topic>
 <topic>Civilian Health and Medical Program of the Uniformed</topic>
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