{"id":12824,"date":"2024-09-02T12:04:53","date_gmt":"2024-09-02T12:04:53","guid":{"rendered":"https:\/\/distilinfo.com\/healthplan\/?p=12824"},"modified":"2024-09-02T12:04:53","modified_gmt":"2024-09-02T12:04:53","slug":"medicare-advantage-overbilling","status":"publish","type":"post","link":"https:\/\/distilinfo.com\/healthplan\/medicare-advantage-overbilling\/","title":{"rendered":"Feds Abandon Plan to Curb Medicare Advantage Overbilling After Industry Pressure"},"content":{"rendered":"\r\n<div id=\"rank-math-toc\" class=\"wp-block-rank-math-toc-block has-pale-ocean-gradient-background has-background\"><nav>\r\n<ul>\r\n<li><a href=\"#introduction\">Introduction<\/a><\/li>\r\n<li><a href=\"#background-of-medicare-advantage-overbilling\">Background of Medicare Advantage Overbilling<\/a>\r\n<ul>\r\n<li><a href=\"#the-role-of-cms-in-curbing-overbilling\">The Role of CMS in Curbing Overbilling<\/a><\/li>\r\n<li><a href=\"#the-2014-draft-regulation-a-missed-opportunity\">The 2014 Draft Regulation: A Missed Opportunity<\/a><\/li>\r\n<\/ul>\r\n<\/li>\r\n<li><a href=\"#the-united-health-group-fraud-case\">The UnitedHealth Group Fraud Case<\/a>\r\n<ul>\r\n<li><a href=\"#allegations-against-united-health-group\">Allegations Against UnitedHealth Group<\/a><\/li>\r\n<li><a href=\"#the-role-of-chart-reviews-in-overbilling\">The Role of Chart Reviews in Overbilling<\/a><\/li>\r\n<\/ul>\r\n<\/li>\r\n<li><a href=\"#industry-response-and-cm-ss-withdrawal\">Industry Response and CMS&#8217;s Withdrawal<\/a>\r\n<ul>\r\n<li><a href=\"#industry-pushback-and-cm-ss-decision\">Industry Pushback and CMS&#8217;s Decision<\/a><\/li>\r\n<li><a href=\"#the-april-2014-meeting-and-its-implications\">The April 2014 Meeting and Its Implications<\/a><\/li>\r\n<\/ul>\r\n<\/li>\r\n<li><a href=\"#broader-implications-of-the-case\">Broader Implications of the Case<\/a>\r\n<ul>\r\n<li><a href=\"#the-impact-on-medicare-advantage-plans\">The Impact on Medicare Advantage Plans<\/a><\/li>\r\n<li><a href=\"#legal-and-ethical-considerations\">Legal and Ethical Considerations<\/a><\/li>\r\n<\/ul>\r\n<\/li>\r\n<li><a href=\"#conclusion\">Conclusion<\/a><\/li>\r\n<li><a href=\"#fa-qs\">FAQs<\/a>\r\n<ul>\r\n<li><a href=\"#1-what-was-the-2014-cms-draft-regulation-about\">1. What was the 2014 CMS draft regulation about?<\/a><\/li>\r\n<li><a href=\"#2-why-did-cms-abandon-the-proposed-regulation\">2. Why did CMS abandon the proposed regulation?<\/a><\/li>\r\n<li><a href=\"#3-what-is-the-do-js-case-against-united-health-group\">3. What is the DOJ&#8217;s case against UnitedHealth Group?<\/a><\/li>\r\n<li><a href=\"#4-how-do-chart-reviews-contribute-to-overbilling\">4. How do chart reviews contribute to overbilling?<\/a><\/li>\r\n<li><a href=\"#5-what-are-the-broader-implications-of-this-case\">5. What are the broader implications of this case?<\/a><\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n<\/nav><\/div>\r\n\r\n\r\n\r\n<h2 id=\"introduction\" class=\"wp-block-heading\">Introduction<\/h2>\r\n\r\n\r\n\r\n<p>The Centers for Medicare &amp; Medicaid Services (CMS) once proposed a regulation aimed at curbing <a href=\"http:\/\/Feds killed plan to curb Medicare Advantage overbilling ...  CBS News https:\/\/www.cbsnews.com \u203a MoneyWatch\" target=\"_blank\">overbilling by Medicare Advantage health insurers,<\/a> a practice that has cost the U.S. government billions of dollars. However, this initiative was abruptly dropped in 2014 due to significant industry opposition, according to recent court filings. This decision has resurfaced as a central issue in a multibillion-dollar fraud case against UnitedHealth Group, one of the largest Medicare Advantage providers in the country.<\/p>\r\n\r\n\r\n\r\n<h2 id=\"background-of-medicare-advantage-overbilling\" class=\"wp-block-heading\">Background of Medicare Advantage Overbilling<\/h2>\r\n\r\n\r\n\r\n<h3 id=\"the-role-of-cms-in-curbing-overbilling\" class=\"wp-block-heading\">The Role of CMS in Curbing Overbilling<\/h3>\r\n\r\n\r\n\r\n<p>Medicare Advantage plans, which now enroll over 33 million members, offer an alternative to traditional Medicare by providing health insurance through private companies. However, these plans have been plagued by accusations of overbilling the government by exaggerating patient illnesses to secure higher payments. The CMS has been aware of these issues for over a decade but has struggled to implement effective measures to curb such practices.<\/p>\r\n\r\n\r\n\r\n<h3 id=\"the-2014-draft-regulation-a-missed-opportunity\" class=\"wp-block-heading\">The 2014 Draft Regulation: A Missed Opportunity<\/h3>\r\n\r\n\r\n\r\n<p>In January 2014, CMS introduced a draft regulation that would have required Medicare Advantage plans to identify and refund overpayments to the government. This rule was aimed at preventing health insurers from profiting from unsupported diagnoses found during chart reviews, a process used to identify additional diagnoses that could increase government payments.<\/p>\r\n\r\n\r\n\r\n<p>However, just a few months later, in May 2014, CMS withdrew the proposal without providing a public explanation. Recent court depositions reveal that the agency backed down due to pressure from the healthcare industry, which vehemently opposed the regulation.<\/p>\r\n\r\n\r\n\r\n<h2 id=\"the-united-health-group-fraud-case\" class=\"wp-block-heading\">The UnitedHealth Group Fraud Case<\/h2>\r\n\r\n\r\n\r\n<h3 id=\"allegations-against-united-health-group\" class=\"wp-block-heading\">Allegations Against UnitedHealth Group<\/h3>\r\n\r\n\r\n\r\n<p>The 2014 decision to abandon the proposed regulation is now a key element in a high-profile fraud case against UnitedHealth Group. <a href=\"http:\/\/Feds kill plan to curb Medicare Advantage overbilling  Elko Daily Free Press https:\/\/elkodaily.com \u203a news \u203a nation-world \u203a feds-kill-...\" target=\"_blank\">The Justice Department<\/a> alleges that the insurer systematically overbilled Medicare by reviewing patient records to find additional diagnoses while ignoring potential overcharges. This practice, according to the Department of Justice (DOJ), resulted in Medicare paying over $2 billion more than it should have.<\/p>\r\n\r\n\r\n\r\n<p>UnitedHealth Group has denied any wrongdoing, arguing that it cannot be penalized for failing to comply with a rule that CMS ultimately decided not to enforce. Nevertheless, the DOJ contends that the company knew it was overbilling Medicare and chose to ignore the issue, violating the False Claims Act.<\/p>\r\n\r\n\r\n\r\n<h3 id=\"the-role-of-chart-reviews-in-overbilling\" class=\"wp-block-heading\">The Role of Chart Reviews in Overbilling<\/h3>\r\n\r\n\r\n\r\n<p>Chart reviews have become a controversial tool in the Medicare Advantage industry. While these reviews are intended to ensure accurate billing, critics argue that they have been misused to inflate government payments. The DOJ&#8217;s case against UnitedHealth Group centers on the allegation that the insurer used chart reviews to identify additional billable conditions without deleting unsupported ones, thereby maximizing profits at the government&#8217;s expense.<\/p>\r\n\r\n\r\n\r\n<h2 id=\"industry-response-and-cm-ss-withdrawal\" class=\"wp-block-heading\">Industry Response and CMS&#8217;s Withdrawal<\/h2>\r\n\r\n\r\n\r\n<h3 id=\"industry-pushback-and-cm-ss-decision\" class=\"wp-block-heading\">Industry Pushback and CMS&#8217;s Decision<\/h3>\r\n\r\n\r\n\r\n<p>The health insurance industry responded aggressively to CMS&#8217;s proposed regulation, with many stakeholders expressing strong opposition. Cheri Rice, the former director of the CMS Medicare plan payment group, testified that the decision to withdraw the proposal was influenced by this pushback. The industry\u2019s reaction was described as an &#8220;uproar,&#8221; leading CMS to conclude that the rule lacked the necessary support for implementation.<\/p>\r\n\r\n\r\n\r\n<p>This withdrawal has raised questions about CMS&#8217;s ability to regulate the Medicare Advantage industry effectively. Some experts argue that CMS&#8217;s decision reflects a broader pattern of reluctance to confront powerful health insurers, even when doing so could save taxpayers billions of dollars.<\/p>\r\n\r\n\r\n\r\n<h3 id=\"the-april-2014-meeting-and-its-implications\" class=\"wp-block-heading\">The April 2014 Meeting and Its Implications<\/h3>\r\n\r\n\r\n\r\n<p>A key moment in the decision-making process was an April 2014 video conference arranged by then-CMS administrator Marilyn Tavenner. The meeting, requested by a senior UnitedHealth Group executive, was intended to discuss the implications of the draft regulation. Although neither Tavenner nor the UnitedHealth executive attended, the meeting&#8217;s outcome was pivotal. UnitedHealth executives reported that CMS staffers indicated there was no obligation to uncover erroneous codes, a statement that has since been disputed by CMS officials.<\/p>\r\n\r\n\r\n\r\n<p>The DOJ has argued that UnitedHealth knew its chart reviews were under investigation at the time of the meeting and that the company was trying to mitigate potential financial losses. This meeting has become a focal point in the ongoing legal battle between the government and UnitedHealth Group.<\/p>\r\n\r\n\r\n\r\n<h2 id=\"broader-implications-of-the-case\" class=\"wp-block-heading\">Broader Implications of the Case<\/h2>\r\n\r\n\r\n\r\n<h3 id=\"the-impact-on-medicare-advantage-plans\" class=\"wp-block-heading\">The Impact on Medicare Advantage Plans<\/h3>\r\n\r\n\r\n\r\n<p>The case against UnitedHealth Group has significant implications for the Medicare Advantage industry as a whole. It highlights the challenges CMS faces in regulating an industry that has grown rapidly and become increasingly powerful. The use of chart reviews to inflate government payments is not unique to UnitedHealth, and other insurers have faced similar allegations.<\/p>\r\n\r\n\r\n\r\n<p>In 2023, Martin\u2019s Point Health Plan settled a whistleblower lawsuit for $22.5 million over similar accusations. These cases suggest that the misuse of chart reviews is widespread and that CMS needs to take stronger action to prevent overbilling.<\/p>\r\n\r\n\r\n\r\n<h3 id=\"legal-and-ethical-considerations\" class=\"wp-block-heading\">Legal and Ethical Considerations<\/h3>\r\n\r\n\r\n\r\n<p>The legal battle over Medicare Advantage overbilling raises important ethical questions. Should private insurers be allowed to profit from government programs by exploiting loopholes in billing practices? And what responsibility does CMS have to ensure that taxpayer dollars are spent appropriately?<\/p>\r\n\r\n\r\n\r\n<p>Critics argue that CMS has been too lenient with the industry, allowing private companies to prioritize profits over patient care. The decision to drop the 2014 regulation is seen as a missed opportunity to hold the industry accountable and protect public funds.<\/p>\r\n\r\n\r\n\r\n<h2 id=\"conclusion\" class=\"wp-block-heading\">Conclusion<\/h2>\r\n\r\n\r\n\r\n<p>The decision by CMS to abandon a plan to curb Medicare Advantage overbilling in 2014 has had far-reaching consequences. The ongoing fraud case against UnitedHealth Group underscores the need for stronger oversight of the Medicare Advantage industry. As the case progresses, it will be crucial to watch how the legal system addresses the complex issues of overbilling and regulatory enforcement in one of the nation&#8217;s most significant healthcare programs.<\/p>\r\n\r\n\r\n\r\n<p><span class=\"ui-provider a b c d e f g h i j k l m n o p q r s t u v w x y z ab ac ae af ag ah ai aj ak\" dir=\"ltr\">Discover the latest <a id=\"menurhl\" class=\"fui-Link ___1rxvrpe f2hkw1w f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh fhgqx19 f1olyrje f1p93eir f1nev41a f1h8hb77 f1lqvz6u f10aw75t fsle3fq f17ae5zn\" title=\"https:\/\/distilinfo.com\/healthplan\/\" href=\"https:\/\/distilinfo.com\/healthplan\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Link payers&#039; news updates\"><strong>payers&#8217; news updates<\/strong><\/a> with a single click. Follow <a id=\"menurhn\" class=\"fui-Link ___1rxvrpe f2hkw1w f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh fhgqx19 f1olyrje f1p93eir f1nev41a f1h8hb77 f1lqvz6u f10aw75t fsle3fq f17ae5zn\" title=\"https:\/\/distilinfo.com\/healthplan\/\" href=\"https:\/\/distilinfo.com\/healthplan\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Link DistilINFO HealthPlan\">DistilINFO HealthPlan<\/a> and stay ahead with updates. Join our community today!<\/span><\/p>\r\n\r\n\r\n\r\n<h2 id=\"fa-qs\" class=\"wp-block-heading\">FAQs<\/h2>\r\n\r\n\r\n\r\n<h3 id=\"1-what-was-the-2014-cms-draft-regulation-about\" class=\"wp-block-heading\">1. What was the 2014 CMS draft regulation about?<\/h3>\r\n\r\n\r\n\r\n<p>A. The 2014 CMS draft regulation aimed to require Medicare Advantage plans to identify and refund overpayments to the government, curbing the practice of overbilling through unsupported diagnoses.<\/p>\r\n\r\n\r\n\r\n<h3 id=\"2-why-did-cms-abandon-the-proposed-regulation\" class=\"wp-block-heading\">2. Why did CMS abandon the proposed regulation?<\/h3>\r\n\r\n\r\n\r\n<p>A. CMS withdrew the regulation due to significant pushback from the healthcare industry, which opposed the rule, leading the agency to decide that the rule lacked sufficient support for implementation.<\/p>\r\n\r\n\r\n\r\n<h3 id=\"3-what-is-the-do-js-case-against-united-health-group\" class=\"wp-block-heading\">3. What is the DOJ&#8217;s case against UnitedHealth Group?<\/h3>\r\n\r\n\r\n\r\n<p>A. The DOJ alleges that UnitedHealth Group overbilled Medicare by identifying additional diagnoses through chart reviews while ignoring overcharges, resulting in billions of dollars in excess payments.<\/p>\r\n\r\n\r\n\r\n<h3 id=\"4-how-do-chart-reviews-contribute-to-overbilling\" class=\"wp-block-heading\">4. How do chart reviews contribute to overbilling?<\/h3>\r\n\r\n\r\n\r\n<p>A. Chart reviews are intended to ensure accurate billing, but critics argue that they have been misused to inflate government payments by adding unsupported diagnoses to patient records.<\/p>\r\n\r\n\r\n\r\n<h3 id=\"5-what-are-the-broader-implications-of-this-case\" class=\"wp-block-heading\">5. What are the broader implications of this case?<\/h3>\r\n\r\n\r\n\r\n<p>A. The case highlights the need for stronger regulation of the Medicare Advantage industry and raises ethical questions about the role of private insurers in government healthcare programs.<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>Introduction The Centers for Medicare &amp; Medicaid Services (CMS) once proposed a regulation aimed at curbing overbilling by Medicare Advantage&#8230; <a href=\"https:\/\/distilinfo.com\/healthplan\/medicare-advantage-overbilling\/\" style=\"white-space: nowrap;\">Continue Reading <i class=\"fas fa-long-arrow-alt-right\" style=\"vertical-align: middle;\"><\/i><\/a><\/p>\n","protected":false},"author":1,"featured_media":12166,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[443],"class_list":{"0":"post-12824","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-distilinfo-originals","8":"tag-overbilling","9":"entry"},"_links":{"self":[{"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/posts\/12824"}],"collection":[{"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/comments?post=12824"}],"version-history":[{"count":4,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/posts\/12824\/revisions"}],"predecessor-version":[{"id":12829,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/posts\/12824\/revisions\/12829"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/media\/12166"}],"wp:attachment":[{"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/media?parent=12824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/categories?post=12824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/tags?post=12824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}