OIG Reports Overpayments for Diabetic Supplies

NASHVILLE, Tenn. — Cigna Government Services and Palmetto
GBA, the DME MACs for Jurisdiction C, inappropriately allowed $125
million in payments for diabetes test strips and lancets in 2007,
according to a report released Friday by the Office of Inspector
General. About $96.6 million of that amount was paid to DME
suppliers.

The OIG recommended that Cigna implement system edits to
identify high-utilization claims; implement edits to identify
claims for test strips and/or lancets with overlapping service
dates for the same beneficiary; and enforce Medicare documentation
requirements by identifying DME suppliers with a high volume of
high utilization claims, performing prepayment reviews of those
suppliers. The OIG said CGS concurred with the recommendations.

See the entire report on OIG’s website.