News Briefs: October 26, 2020

In a new provider compliance audit,[1] the HHS Office of Inspector General (OIG) said Gem City Home Care in Dayton, Ohio, was overpaid $40,621, which was extrapolated to $2.67 million. OIG audited 100 claims submitted in 2016 and 2017 and found errors on 25. The errors were attributed to claims for Medicare beneficiaries who weren’t homebound or didn’t need skilled services. OIG recommended Gem City refund the portion of the $2.67 million within the four-year reopening period and “exercise reasonable diligence to identify and return overpayments in accordance with the 60-day rule” outside the audit period. Gem City refuted the findings of OIG’s medical review contractor before the final report. The home health agency argued the contractor didn’t apply Medicare’s homebound requirements properly and “misapplied” the skilled services requirements. “The Gem City billing error rate, based on an expert audit, was 2.86%, validating the diligent billing practices, dedicated compliance program, and robust audit process of the agency,” the letter asserted. In response, OIG said it reduced the number of claims in error from 36 to 25. “The overpayment amount decreased for nine claims, increased for two claims, and did not change for one claim,” OIG said.

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