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<classification authority="sudocs">GA 1.13:HEHS-95-210</classification>
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 <subject>Medicare programs</subject>
 <subject>Health care cost control</subject>
 <subject>Medical services rates</subject>
 <subject>Fraud</subject>
 <subject>Internal controls</subject>
 <subject>Questionable payments</subject>
 <subject>Health maintenance organizations</subject>
 <subject>Billing procedures</subject>
 <subject>Medical expense claims</subject>
 <identifier>HCFA Medicare Transaction System</identifier>
 <identifier>Medicaid Program</identifier>
 <identifier>CHAMPUS</identifier>
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<titleInfo>
 <title>Medicare Spending: Modern Management Strategies Needed to Curb Billions in Unnecessary Payments</title>
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<abstract>Pursuant to a congressional request, GAO examined Medicare&apos;s
vulnerability to provider exploitation and ways to remedy Medicare fraud
and abuse.&lt;p/&gt;GAO found that Medicare is vulnerable to billions of dollars in
unnecessary payments, since Medicare: (1) pays higher than market rates
for certain services and supplies; (2) anti-fraud and abuse controls do
not systematically prevent the payment of claims for improbably high
charges or manipulated billing codes; and (3) checks on the legitimacy
of providers do not adequately detect the potential for fraud. In
addition, GAO found that: (1) Medicare has not used the health care
management strategies that have helped private payers alleviate
weaknesses; (2) Medicare pricing methods and utilization controls have
not adapted to current health care financing and delivery changes; (3)
the uncertain line between adequate managerial control and excessive
government intervention explains the differences in the ways Medicare
and private health insurers administer their respective plans; and (4)
Medicare should implement a strategy to remedy its weaknesses that
includes competitive payment rates, enhanced fraud detection, and more
rigorous criteria for granting authorization to bill the program.</abstract>
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<identifier type="preferred citation">GAO/HEHS-95-210</identifier>
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<subject>
 <topic>Medicare programs</topic>
 <topic>Health care cost control</topic>
 <topic>Medical services rates</topic>
 <topic>Fraud</topic>
 <topic>Internal controls</topic>
 <topic>Questionable payments</topic>
 <topic>Health maintenance organizations</topic>
 <topic>Billing procedures</topic>
 <topic>Medical expense claims</topic>
 <topic>HCFA Medicare Transaction System</topic>
 <topic>Medicaid Program</topic>
 <topic>CHAMPUS</topic>
 <topic>Civilian Health and Medical Program of the Uniformed</topic>
 <topic>Services</topic>
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 <titleInfo>
  <title>United States Code</title>
  <partNumber>Title 42 Section 1320a-7</partNumber>
  <partNumber>Title 42 Section 1395a</partNumber>
  <partNumber>Title 42 Section 1395</partNumber>
  <partNumber>Title 42 Section 1395f</partNumber>
  <partNumber>Title 42 Section 1395h</partNumber>
  <partNumber>Title 42 Section 1395m(a)(10)(B)</partNumber>
  <partNumber>Title 42 Section 1395m(i)</partNumber>
  <partNumber>Title 42 Section 1395mm</partNumber>
  <partNumber>Title 42 Section 1395u</partNumber>
  <partNumber>Title 42 Section 1395u(b)(8)</partNumber>
  <partNumber>Title 42 Section 1395x(e)(9)</partNumber>
  <partNumber>Title 42 Section 1395x(v)</partNumber>
</titleInfo>
 <identifier type="USC citation">42 U.S.C. 1320a-7</identifier>
 <identifier type="USC citation">42 U.S.C. 1395a</identifier>
 <identifier type="USC citation">42 U.S.C. 1395</identifier>
 <identifier type="USC citation">42 U.S.C. 1395f</identifier>
 <identifier type="USC citation">42 U.S.C. 1395h</identifier>
 <identifier type="USC citation">42 U.S.C. 1395m(a)(10)(B)</identifier>
 <identifier type="USC citation">42 U.S.C. 1395m(i)</identifier>
 <identifier type="USC citation">42 U.S.C. 1395mm</identifier>
 <identifier type="USC citation">42 U.S.C. 1395u</identifier>
 <identifier type="USC citation">42 U.S.C. 1395u(b)(8)</identifier>
 <identifier type="USC citation">42 U.S.C. 1395x(e)(9)</identifier>
 <identifier type="USC citation">42 U.S.C. 1395x(v)</identifier>
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