HCFA blasted for low Medicare claims settlements
Washington -- Bruce C. Vladeck, PhD, former administrator of the Health Care Financing Administration, was subjected to an intense Senate grilling on charges raised by federal investigators that the agency had ignored its own rules when settling three large Medicare overpayment claims.
The General Accounting Office found that while Dr. Vladeck served as HCFA administrator from 1993 to 1997, the agency failed to seek review from its own Office of General Counsel or the Justice Dept. when settling the claims with a home health agency and two hospital systems. Agency rules require review if claims tally $100,000 or more. In each of the three cases, the amount in question was substantially greater than that.
Sen. Susan M. Collins (R, Maine), chair of the Committee on Government Affairs investigations subcommittee, questioned HCFA's acceptance of only $120 million of the contested $332 million in overpayments.
"Contrary to HCFA's own regulations, no government attorney reviewed or approved the three questionable settlements," Collins said at the March 28 hearing. By entering into "improper agreements involving millions of dollars," HCFA "jeopardizes our ability to afford new benefits for our senior citizens and endangers the integrity and fairness of the entire system," she charged.
On the day of the hearing, HCFA released a statement indicating the agency had, since the settlements in question, hired a chief financial officer and a deputy to oversee debt collection activities. A new system of checks and balances has also been enacted to ensure that all regulations are being followed, the agency said.
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