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<classification authority="sudocs">GA 1.13:GAO-08-955</classification>
<identifier type="uri">https://www.govinfo.gov/app/details/GAOREPORTS-GAO-08-955</identifier>
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 <subject>Accountability</subject>
 <subject>Cost analysis</subject>
 <subject>Documentation</subject>
 <subject>Fraud</subject>
 <subject>Health care cost control</subject>
 <subject>Health care costs</subject>
 <subject>Health care fraud</subject>
 <subject>Health care programs</subject>
 <subject>Health care services</subject>
 <subject>Investigations into federal agencies</subject>
 <subject>Medical equipment</subject>
 <subject>Medical supplies</subject>
 <subject>Medical technology</subject>
 <subject>Medicare</subject>
 <subject>Program evaluation</subject>
 <subject>Program management</subject>
 <subject>Risk assessment</subject>
 <subject>Risk management</subject>
 <subject>Strategic planning</subject>
 <subject>Corrective action</subject>
 <subject>Waste, fraud, and abuse</subject>
 <subject>durable medical equipment, prosthetics,</subject>
 <subject>orthotics, and supplies (DMEPOS)</subject>
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<titleInfo>
 <title>Medicare: Covert Testing Exposes Weaknesses in the Durable Medical Equipment Supplier Screening Process</title>
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<abstract>According to the Department of Health and Human Services (HHS),
schemes to defraud the Medicare program have grown more elaborate
in recent years. In particular, HHS has acknowledged Centers for 
Medicare &amp; Medicaid Service&apos;s (CMS) oversight of suppliers of	 
durable medical equipment, prosthetics, orthotics, and supplies  
(DMEPOS) is inadequate to prevent fraud and abuse. Specifically, 
weaknesses in the DMEPOS enrollment and inspection process have  
allowed sham companies to fraudulently bill Medicare for	 
unnecessary or nonexistent supplies. From April 2006 through	 
March 2007, CMS estimated that Medicare improperly paid $1	 
billion for DMEPOS supplies--in part due to fraud by suppliers.  
Due to the committee&apos;s concern about vulnerabilities in the	 
enrollment process, GAO used publicly available guidance to	 
attempt to create DMEPOS suppliers, obtain Medicare billing	 
numbers, and complete electronic test billing. GAO also reported 
on closed cases provided by the HHS Inspector General (IG) to	 
illustrate the techniques used by criminals to fraudulently bill 
Medicare. On June 18, 2008, we briefed CMS representatives on the
results of our investigation. In response, they acknowledged that
our covert tests illustrate gaps in oversight that still require 
improvement and stated that they would continue to work to	 
strengthen the entire DMEPOS enrollment process.</abstract>
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<identifier type="preferred citation">GAO-08-955</identifier>
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<subject>
 <topic>Accountability</topic>
 <topic>Cost analysis</topic>
 <topic>Documentation</topic>
 <topic>Fraud</topic>
 <topic>Health care cost control</topic>
 <topic>Health care costs</topic>
 <topic>Health care fraud</topic>
 <topic>Health care programs</topic>
 <topic>Health care services</topic>
 <topic>Investigations into federal agencies</topic>
 <topic>Medical equipment</topic>
 <topic>Medical supplies</topic>
 <topic>Medical technology</topic>
 <topic>Medicare</topic>
 <topic>Program evaluation</topic>
 <topic>Program management</topic>
 <topic>Risk assessment</topic>
 <topic>Risk management</topic>
 <topic>Strategic planning</topic>
 <topic>Corrective action</topic>
 <topic>Waste, fraud, and abuse</topic>
 <topic>durable medical equipment, prosthetics,</topic>
 <topic>orthotics, and supplies (DMEPOS)</topic>
</subject>
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 <titleInfo>
  <title>United States Public Law 173 (108th Congress)</title>
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 <identifier type="public law citation">Public Law 108-173</identifier>
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