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<classification authority="sudocs">GA 1.13:T-AIMD-95-133</classification>
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 <subject>Medicare programs</subject>
 <subject>Program abuses</subject>
 <subject>Billing procedures</subject>
 <subject>Overpayments</subject>
 <subject>Medical expense claims</subject>
 <subject>Health care cost control</subject>
 <subject>Claims processing</subject>
 <subject>Medical information systems</subject>
 <subject>Cost effectiveness analysis</subject>
 <subject>Application software</subject>
 <identifier>Physicians Current Procedural Terminology System</identifier>
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 <title>Medicare Claims Billing Abuse: Commercial Software Could Save Hundreds of Millions Annually</title>
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<abstract>With an investment of only $20 million in off-the-shelf commercial
software, Medicare could save nearly $4 billion over five years by
detecting fraudulent claims by physicians--primarily manipulation of
billing codes.  On the basis of a test in which four commercial firms
reprocessed samples of more than 20,000 paid Medicare claims, GAO
estimates that the software could have saved $603 million in 1993 and
$640 million in 1994.  In addition, GAO estimates that because
beneficiaries are responsible for about 22 percent of the payment
amounts--mainly in the form of deductibles and copayments--Medicare
could have saved an additional $134 million in 1993 and $142 million in
1994.  The test results indicate that only a small proportion of
providers are responsible for most of the abuses: less than 10 percent
of providers in the sample had miscoded claims.</abstract>
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 <topic>Medicare programs</topic>
 <topic>Program abuses</topic>
 <topic>Billing procedures</topic>
 <topic>Overpayments</topic>
 <topic>Medical expense claims</topic>
 <topic>Health care cost control</topic>
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 <topic>Application software</topic>
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