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20

Feb

2012

Knee Orthoses Part of Fraud Scheme, RAC Issue PDF Print E-mail
Written by Karen Long   
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Knee Orthoses Part of Fraud Scheme, RAC Issue
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DCS, the Region A recovery auditor, will recoup payments for additions to knee orthoses because they are included in reimbursement for specific base knee orthoses.

 


 

The new issue, posted Feb. 13, applies to 11 states. Maryland was not included in the post.

 

Knee orthoses also were part of two Medicare schemes in Puerto Rico that led to indictments of 10 people announced in January.

Both cases involved submission of false claims for durable medical equipment (DME) including knee orthoses and power wheelchairs, according to the Office of Inspector General (OIG).

 

In the 39-count indictment, the government alleges that one company submitted more than 1,500 false claims for medically unnecessary DME totaling almost $3 million. Medicare paid $1.4 million but put the company on prepayment review. At that point, two defendants bought a second company and submitted at least 359 fraudulent claims. When that company was put on prepayment review, defendants bought another company and submitted more than 100 more false claims, OIG stated. Medicare paid a total of more than $1.9 million on those claims.

 

The government seeks forfeiture of more than $1.9 million including two bank accounts, an investment account and a condominium, OIG stated. In a 60-count indictment, defendants submitted 95 fraudulent claims for DME for which Medicare paid almost $108,000.

 

RACs Post DME, Physician, Hospital Issues

Along with DCS's knee orthoses issue, Region C RAC Connolly posted a DME issue about therapeutic footwear use. RACs also posted two physician issues and two inpatient hospital issues.

 

 

Durable medical equipment

 

Name of issue

Date posted or approved

Regions/states where it is active

Description of issue

Document sources

Therapeutic footwear utilization

2/15/12

RAC Region C

The LCD and policy article for therapeutic shoes for diabetes limit the use of shoes and inserts. For patients meeting these criteria, coverage is limited to one of the following within one calendar year (January through December): One pair of custom-molded shoes (A5501), which includes inserts provided with those shoes, and two additional pairs of inserts; or one pair of depth shoes (A5500) and three pairs of inserts.

CMS Pub. 100-02 chapter 15

Knee orthosis bundling

2/13/12

Conn., Del., D.C., Maine, Mass., N.H., N.J., N.Y., Pa., R.I., Vt.

Payments for knee orthoses additions, as specified in NHIC's LCD for knee orthoses (L27263), are bundled into the payment for specific base knee orthoses and should be recouped if paid separately.

LCD for knee orthoses (L27263); article for knee orthoses - policy article (A46762) DME MAC jurisdiction A

 

 



 

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