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<classification authority="sudocs">GA 1.13:HEHS-00-31</classification>
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 <subject>Health insurance</subject>
 <subject>Medical expense claims</subject>
 <subject>Health insurance cost control</subject>
 <subject>Mental care facilities</subject>
 <subject>Claims processing</subject>
 <subject>Hospital care services</subject>
 <subject>Medical information systems</subject>
 <subject>Internal controls</subject>
 <subject>Fraud</subject>
 <subject>Program abuses</subject>
 <identifier>HHS Community Mental Health Center Program</identifier>
 <identifier>Medicare Program</identifier>
 <identifier>Medicare Partial Hospitalization Program</identifier>
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<titleInfo>
 <title>Medicare: Lessons Learned From HCFA&apos;s Implementation of</title>
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<abstract>Pursuant to a congressional request, GAO provided information on the
Health Care Financing Administration&apos;s (HCFA) efforts to implement
changes to the Medicare program, focusing on HCFA&apos;s implementation of
the: (1) expansion of the partial hospitalization benefit; and (2) more
recent changes under the Balanced Budget Act of 1997 (BBA) to determine
whether HCFA is acting upon lessons learned from the partial
hospitalization program.&lt;p/&gt;GAO noted that: (1) HCFA has a difficult task in overseeing the
implementation of changes to Medicare, yet this oversight is essential
to counteract the opportunities that sometimes arise for dishonest
providers to abuse the program; (2) in the early 1990s, when HCFA
implemented the expansion of the partial hospitalization benefit to
include community mental health centers (CMHC), HCFA did not
systematically evaluate the implications of the benefit&apos;s expansion; (3)
as a result, Medicare paid claims that should not have been paid; (4)
moreover, HCFA did not provide its contractors with timely and adequate
guidance on the partial hospitalization benefit, and neither HCFA nor
its contractors systematically monitored claims for the new benefit
until it had been in effect for several years; (5) finally, although
individual Medicare contractors detected some improper payments in the
early years of the partial hospitalization program, HCFA did not take
prompt action to investigate these problems or share this information
with its other contractors; (6) taking advantage of its experience with
CMHC, HCFA has done better in implementing the benefit changes required
by the BBA, but more needs to be done to determine whether corrective
actions are needed; (7) for example, HCFA created several internal
groups to evaluate its implementation of certain changes under the BBA
and to identify the potential for vulnerability to fraud and abuse that
might result from these changes; (8) in addition, HCFA has provided more
timely explanation of the benefit changes to its contractors and
providers, but it still needs to provide contractors with more specific
instructions on how to review claims and detect inappropriate billing;
(9) although HCFA has recognized the need to develop baseline data for
use in identifying questionable claims, it has not yet begun to do so;
(10) finally, HCFA has made limited progress in addressing the
recommendations of the groups that it charged with evaluating its
implementation of several BBA benefit changes; and (11) for example,
HCFA was advised to conduct a baseline study to determine the volume and
type of services billed by nonphysician providers, but HCFA officials
told GAO it had not yet done so largely because its resources were
focused on year-2000 concerns.</abstract>
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<identifier type="preferred citation">GAO/HEHS-00-31</identifier>
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<note>Letter Report</note>
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<subject>
 <topic>Health insurance</topic>
 <topic>Medical expense claims</topic>
 <topic>Health insurance cost control</topic>
 <topic>Mental care facilities</topic>
 <topic>Claims processing</topic>
 <topic>Hospital care services</topic>
 <topic>Medical information systems</topic>
 <topic>Internal controls</topic>
 <topic>Fraud</topic>
 <topic>Program abuses</topic>
 <topic>HHS Community Mental Health Center Program</topic>
 <topic>Medicare Program</topic>
 <topic>Medicare Partial Hospitalization Program</topic>
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