State Overpaid
$1.2 Million for Wheelchairs, Auditor Says. The Department of Health Care Services paid about
25 percent more than it should have in Medi-Cal
claims for durable medical equipment (such as wheelchairs and wheelchair
accessories) during a recent audit period, the California State Auditor
reported June 17.
The auditor noted
that while the department has recovered almost $960,000 of the $1.2 million in
overpayments, "it does not know the extent to which other providers may
have also overbilled for medical equipment." The auditor pointed out that
the $1.2 million in overpayments was discovered after "a limited review of
providers" conducted by the department, so there is a likelihood that many
more overpayments went through.
"Current
auditing efforts do not provide enough coverage of medical equipment
reimbursements to effectively ensure providers' compliance with the billing
procedures," the auditor stated.
The audit also
found that because the Department of Health Care Services "has not
identified a practical means to monitor and enforce its billing and
reimbursement procedures, price controls enacted in 2003 have not met their
intended purpose." (Source: California State Auditor Report 2007-122, June
17.)
Cal-Taxletter June 20, 2008
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