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<classification authority="sudocs">GA 1.13:T-HEHS/OSI-99-174</classification>
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 <subject>Claims processing</subject>
 <subject>Overpayments</subject>
 <subject>Fraud</subject>
 <subject>Internal controls</subject>
 <subject>Contract performance</subject>
 <subject>Program abuses</subject>
 <subject>Contract oversight</subject>
 <subject>Contractor violations</subject>
 <subject>Fines (penalties)</subject>
 <subject>Health insurance</subject>
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 <title>Medicare: HCFA Oversight Allows Contractor Improprieties</title>
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<abstract>The Health Care Financing Administration (HCFA) paid its Medicare
fee-for-service claims administration contractors $1.6 billion in fiscal
year 1998 to serve as the program&apos;s first line of defense against
inappropriate and fraudulent claims. Since 1993, eight contractors have
been convicted of criminal offenses, have been fined, or have entered
into civil settlements. Several of their employees engaged in
improprieties and covered up poor performance to allow contractors to
keep their Medicare business. Improper activities included improperly
screening, processing, and paying claims; destroying claims; and failing
to properly collect money providers owed Medicare. Contractors also
falsified their performance results and tried to deceive HCFA and
circumvent its performance reviews. HCFA often failed to detect improper
activities because it gave contractors too much advance notice of its
oversight visits and record reviews. Weaknesses in HCFA&apos;s current
oversight might allow the same types of activities to continue
undetected. GAO believes that HCFA plans to act on recommendations GAO
made in July 1999 regarding its contractor management policy and plans,
assessment, evaluation, and oversight. Although this will help improve
its management and oversight of the contractors, it will not make
Medicare less vulnerable to their abuses.</abstract>
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<subject>
 <topic>Claims processing</topic>
 <topic>Overpayments</topic>
 <topic>Fraud</topic>
 <topic>Internal controls</topic>
 <topic>Contract performance</topic>
 <topic>Program abuses</topic>
 <topic>Contract oversight</topic>
 <topic>Contractor violations</topic>
 <topic>Fines (penalties)</topic>
 <topic>Health insurance</topic>
 <topic>Medicare Program</topic>
 <topic>Medicare Contractor Performance Evaluation Program</topic>
 <topic>Blue Cross and Blue Shield Insurance Benefit Plan</topic>
 <topic>Medicare Fee-for-Service Program</topic>
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