White House takes aim at Medicare and Medicaid billing errors

September 02, 2015

White House budget director Shaun Donovan called for a "more aggressive strategy" to combat improper government payments to doctors, hospitals and insurance companies in a previously-undisclosed letter to HHS Secretary Sylvia M. Burwell. Medicare and Medicaid waste billions of tax dollars every year through these improper payments, Donovan said. He cited progress in reducing Medicare Advantage payment errors, but said that the government estimate of $12.2 billion in these mistakes for fiscal year 2014 "remains a concern." Donovan directed health officials to develop a "comprehensive corrective action plan" by April 30 that describes the problem's root causes and sketches out what it would take to clean things up. He also asked for a plan to improve the integrity of the ACA insurance programs, which he also described as a key priority, by May 31 of this year.
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