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February Report: University of Minnesota Medical Center Overbilled Medicare $3.2 Million

FOR IMMEDIATE RELEASE                                                                                     

CONTACT: Kelly Davis
kelly.davis@rubinmeyer.com
(202) 898-0995

February Report: University of Minnesota Medical Center Overbilled Medicare $3.2 Million

Washington, D.C. – A report released this week by the U.S. Department of Health and Human Services Office of Inspector General found that the University of Minnesota Medical Center in Minneapolis overbilled Medicare $3,266,841 from 2012 to 2013.  According to the OIG, 51 percent of the hospital’s Medicare claims were improperly billed.

According to the Council for Medicare Integrity, a nonprofit group that advocates for proper Medicare billing, the University of Minnesota Medical Center’s improper billing is part of a nationwide problem.  Since 2011, the rate of Medicare Fee-For-Service improper payments has risen steadily from 8.6 percent to 12.1 percent, with a loss of $46 billion in misbilled taxpayer dollars in 2014 alone.

In an effort to reduce waste within Medicare, the Recovery Audit Contractor Program (RAC) was put in place by Congress in 2009 to review 2 percent of Medicare Fee-For-Service post payment claims to identify and recover improper payments made to providers.

Senator Claire McCaskill (D-MO), the Chairman and Ranking Member on the U.S. Senate Special Committee on Aging, has credited the RAC Program with returning $10 billion back to the program and extending its life by two years. Unfortunately, the RAC Program has been scaled back over the past few years, preventing the return of improper payments at the same rate of previous years.

“We are absolutely moving in the wrong direction,” said Kristin Walter, spokesperson for the Council for Medicare Integrity. “With Medicare spending on the rise and Medicare improper billing at historic levels, it is more important than ever that policy makers continue to champion the RAC Program and increase the recovery of misbilled taxpayer dollars to the Trust Fund.”

For more information, please visit: www.medicareintegrity.org.

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About the Council for Medicare Integrity
The Council for Medicare Integrity is a 501(c)(6) non-profit organization. The Council’s mission is to educate policymakers and other stakeholders regarding the importance of healthcare integrity programs that help Medicare identify and correct improper payments.

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