OIG to CMS: Millions in overpayments remain uncollected

Thursday, February 21, 2013

WASHINGTON – The Office of Inspector General (OIG) recommends in a new report that CMS collect the more than $225.6 million in Medicaid overpayments that is due the federal government.

As of December 2012, CMS reported collecting more than $987 million of the roughly $1.2 trillion dollars in Medicaid overpayments from audit reports covered by the OIG’s review. CMS failed to collect the remaining $225,603,567 in overpayments because it had not always proceeded with the collection process in a timely manner, the OIG stated in the report.

Additionally, CMS could not document that $7.2 million it reported as collected had been collected because it did not maintain adequate supporting documentation, the OIG stated.

Other recommendations for CMS: Review and address delays in resolving OIG audit recommendations; support adequate documentation for collection of overpayments; and educate the states about their responsibility to report overpayments.