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<classification authority="sudocs">GA 1.13:T-HEHS-98-9</classification>
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 <subject>Managed health care</subject>
 <subject>Program abuses</subject>
 <subject>Fraud</subject>
 <subject>Overpayments</subject>
 <subject>Health care programs</subject>
 <subject>Health care cost control</subject>
 <subject>Claims processing</subject>
 <identifier>Medicare Program</identifier>
 <identifier>Medicare Choice Program</identifier>
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<titleInfo>
 <title>Medicare: Recent Legislation to Minimize Fraud and Abuse Requires Effective Implementation</title>
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<abstract>Pursuant to a congressional request, GAO discussed recent legislative
efforts to address fraud and abuse in the Medicare program.&lt;p/&gt;GAO noted that: (1) both the Health Insurance Portability and
Accountability Act of 1996 (HIPAA) and the Balanced Budget Act of 1997
(BBA) directly address Medicare fraud and abuse and provide
opportunities to improve program management; (2) both acts offer civil
and criminal penalties; (3) they also introduce opportunities to deploy
new program safeguards; (4) for example, on the fee-for-service side of
the program, BBA introduces prospective payment methods for skilled
nursing facility and home health services, in part to halt opportunists
from overbilling Medicare; (5) these are among Medicare&apos;s
fastest-growing components: from 1989 to 1996, spending for home health
care and skilled nursing facility care averaged, respectively, a
33-percent and 22-percent annual rise; (6) HIPAA also ensures a stable
source of funding for anti-fraud-and-abuse activities, authorizes the
Health Care Financing Administration (HCFA) to contract for improved
claims reviews, enhances law enforcement coordination, and calls for
data collection improvements; (7) on the managed care side, BBA&apos;s
Medicare+Choice program, which broadens beyond health maintenance
organizations (HMO) the private health plans available to Medicare
beneficiaries, includes several provisions addressing the marketing,
enrollment, and quality of care issues raised in GAO&apos;s reports and those
of the Inspector General; (8) as always, however, the success of any
reform legislation is contingent on its implementation; (9) the Congress
has provided the Department of Health and Human Resources (HHS) and
HCFA, the Department&apos;s administrator of the Medicare program, with many
new statutory requirements governing traditional fee-for-service
Medicare; some require little effort to carry out, whereas others, such
as prospective payment system development, will require extensive time
and resources to implement effectively; (10) in addition, the
Medicare+Choice program will add considerably to HCFA&apos;s private plan
monitoring workload; (11) the project to modernize Medicare&apos;s claims
processing systems, which are at the core of many fraud and abuse
detection efforts, has recently been halted; (12) this brings into
question the ability of HCFA and its contractors to perform
expeditiously the data-intensive analyses needed to spot and counteract
abusive billing schemes; and (13) HCFA agrees that the tasks associated
with implementing HIPAA and BBA mandates are considerable and plans to
report routinely to HHS officials and to the Congress on HCFA&apos;s progress
implementing the legislation.</abstract>
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<identifier type="preferred citation">GAO/T-HEHS-98-9</identifier>
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<note>Testimony</note>
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 <searchTitle>GAO/T-HEHS-98-9; Medicare: Recent Legislation to Minimize Fraud and Abuse Requires Effective Implementation;
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<subject>
 <topic>Managed health care</topic>
 <topic>Program abuses</topic>
 <topic>Fraud</topic>
 <topic>Overpayments</topic>
 <topic>Health care programs</topic>
 <topic>Health care cost control</topic>
 <topic>Claims processing</topic>
 <topic>Medicare Program</topic>
 <topic>Medicare Choice Program</topic>
 <topic>HCFA Medicare Transaction System</topic>
</subject>
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  <title>United States Public Law 191 (104th Congress)</title>
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 <identifier type="public law citation">Public Law 104-191</identifier>
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 <titleInfo>
  <title>United States Public Law 33 (105th Congress)</title>
</titleInfo>
 <identifier type="public law citation">Public Law 105-33</identifier>
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