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<classification authority="sudocs">GA 1.13:HEHS-98-160</classification>
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 <subject>Health care programs</subject>
 <subject>Erroneous payments</subject>
 <subject>Program abuses</subject>
 <subject>Fraud</subject>
 <subject>Cost control</subject>
 <subject>Funds management</subject>
 <subject>Internal controls</subject>
 <subject>Medical expense claims</subject>
 <subject>Service contracts</subject>
 <identifier>Medicare Trust Fund</identifier>
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<titleInfo>
 <title>Medicare: HCFA&apos;s Use of Anti-Fraud-and-Abuse Funding and Authorities</title>
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<abstract>Pursuant to a legislative requirement, GAO reviewed: (1) the Health Care
Financing Administration&apos;s (HCFA) progress in implementing the Medicare
Integrity Program; (2) what additional resources and authorities
Congress provided to HCFA through the Medicare Integrity Program; (3)
how HCFA has made use of these resources and authorities to improve the
protection of Medicare funds; and (4) how HCFA plans to use these
authorities and resources in the future.&lt;p/&gt;GAO noted that: (1) the Health Insurance Portability and Accountability
Act of 1996 (HIPAA) established the Medicare Integrity Program to
subsume the program safeguard activities of HCFA and its current claims
processing contractors; (2) rather than fund safeguard activities as
part of HCFA&apos;s annual administrative budget appropriation, HIPAA
appropriates safeguard funding for each year beginning in fiscal year
(FY) 1997; (3) the Department of Health and Human Services (HHS)
proposed this type of funding arrangement in 1994 so that HCFA and its
contractors could better plan and manage program safeguard efforts; (4)
the Medicare Integrity Program also provides HCFA the authority to
contract with specialists in program safeguards, to separate these
functions from current claims processing and payment contracts; (5) the
new contracts with program safeguard specialists are intended to make
important improvements in HCFA&apos;s program safeguard efforts; (6) these
improvements will make it possible to review all of the claims for a
single beneficiary in one place, reduce the number of contractor
safeguard units to increase consistency and simplify HCFA&apos;s oversight,
and better manage the conflicts of interest that develop when Medicare
contractors expand into new health care businesses; (7) for FY 1998,
HIPAA significantly increased program safeguard funding over the FY 1997
level; (8) although this funding increase for 1998 was assured when
HIPAA became law, HCFA did not notify contractors of their funding until
one-third of FY 1998 was past; (9) contractors reported that, because of
this delayed notification, they delayed plans to increase their program
safeguard staff; (10) HCFA is progressing slowly in contracting with
safeguard specialists; (11) the first contract, to be awarded by January
1999, will be limited in scope, covering only part of the work
envisioned for program safeguard contracts; (12) this first contract
will therefore not provide many of the benefits ultimately expected, nor
will it reduce HCFA&apos;s reliance on its current contractors for program
safeguards; and (13) HCFA has no firm plans regarding when it will
expand the scope of this contract or award a second safeguard specialist
contract.</abstract>
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<note>Letter Report</note>
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<subject>
 <topic>Health care programs</topic>
 <topic>Erroneous payments</topic>
 <topic>Program abuses</topic>
 <topic>Fraud</topic>
 <topic>Cost control</topic>
 <topic>Funds management</topic>
 <topic>Internal controls</topic>
 <topic>Medical expense claims</topic>
 <topic>Service contracts</topic>
 <topic>Medicare Trust Fund</topic>
 <topic>Medicare Program</topic>
 <topic>Medicare Integrity Program</topic>
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