In letter to CMS Administrator, Kuster raises concerns over new report detailing $23 million in improper payments made on behalf of over 17,000 deceased people in 2011

Kuster calls for immediate action to implement aggressive controls to prevent improper payments and ensure Medicare dollars are spent caring for our nation’s seniors; urges Granite Staters to report suspected Medicare errors, fraud, or abuse

In the wake of a troubling new Inspector General (IG) report detailing thousands of improper Medicare payments that have wasted millions of taxpayer dollars, Congresswoman Annie Kuster (NH-02) today called on the Centers for Medicare and Medicaid Services (CMS) to take immediate and aggressive actions to crack down on fraud and wasteful improper payments. A recent report by the Department of Health and Human Services (HHS) IG found that in 2011 alone, CMS made over 17,000 improper payments on behalf of deceased individuals to providers, suppliers, Medicare Advantage organizations, and prescription drug plan sponsors at a cost of $23 million to taxpayers. According to the Government Accountability Office, Medicare made a total of more than $44 billion in improper payments in 2012.

“I know we share a commitment to protecting Medicare by ensuring that limited taxpayer dollars are invested to the greatest benefit of our seniors. In that spirit, I was deeply frustrated by the October 30, 2013, Department of Health and Human Services Inspector General (IG) report which found that CMS made $23 million in improper payments on behalf of deceased individuals in 2011,” Kuster wrote. “To prevent the diversion of precious resources away from our nation’s seniors, I respectfully urge you to immediately and aggressively prioritize the implementation of the IG’s recommendations to prevent future improper payments, recover past improper payments, and ensure the legitimacy of providers and suppliers.”   

“Granite State seniors have worked hard their entire lives as they raised their families, strengthened our country, and contributed to Medicare and other programs,” Kuster continued. “As public servants, we owe it to seniors in New Hampshire and across the country to ensure Medicare is administered with the highest level of efficiency so that valuable taxpayer funds are put toward caring for our seniors -- not enriching those who would defraud or abuse our health care system.”
According to the IG report, improper payments often result from fraudulent claims submitted by providers or suppliers for deceased beneficiaries. The IG specifically highlighted a high profile case from 2008 involving an individual who was indicted for health fraud after his company was found to have submitted more than $2 million worth of fraudulent claims, 10 of which were for deceased individuals. The report also found that roughly 11 percent of the 17,000 improper payments made in 2011 stemmed from missing or incomplete dates of death.

In addition to calling on the CMS Administrator to act on the IG report’s recommendations, Kuster is also urging Granite Staters to be vigilant and report any suspected Medicare waste, fraud, or abuse to the Office of the HHS Inspector General at 1-800-HHS-TIPS (1-800-447-8477) or online at https://www.StopMedicareFraud.gov. New Hampshire is home to more than 230,000 Medicare beneficiaries.

The full text of the letter is below:

November 7, 2013

Dear Administrator Tavenner:

Thank you for your service, and for your work to provide quality, affordable health care coverage to New Hampshire’s seniors. I know we share a commitment to protecting Medicare by ensuring that limited taxpayer dollars are invested to the greatest benefit of our seniors.

In that spirit, I was deeply frustrated by the October 30, 2013, Department of Health and Human Services Inspector General (IG) report which found that CMS made $23 million in improper payments on behalf of deceased individuals in 2011. While this figure represents less than one-tenth of one percent of total Medicare expenditures, we must not accept any degree of waste in this critical program – no matter how big or small.   

To prevent the diversion of precious resources away from our nation’s seniors, I respectfully urge you to immediately and aggressively prioritize the implementation of the IG’s recommendations to prevent future improper payments, recover past improper payments, and ensure the legitimacy of providers and suppliers. Furthermore, I request that you provide updates on CMS’s progress in implementing these reforms.

I appreciate that CMS has installed important safeguards to help prevent these types of improper payments, and it’s clear that those efforts have made a positive impact in recent years. But, we cannot be satisfied until the Administration has taken all steps necessary to completely eliminate this problem and ensure that every Medicare dollar is allocated appropriately. 

Granite State seniors have worked hard their entire lives as they raised their families, strengthened our country, and contributed to Medicare and other programs. As public servants, we owe it to seniors in New Hampshire and across the country to ensure Medicare is administered with the highest level of efficiency so that valuable taxpayer funds are put toward caring for our seniors – not enriching those who would defraud or abuse our health care system.

I greatly appreciate your commitment to protecting and strengthening Medicare, and I look forward to continuing to work with you to that end. Thank you for your consideration of this request.

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