Medicare overpays for VES, report finds

Monday, January 13, 2014

BALTIMORE – Medicare payments for vacuum erection systems (VES) are more than twice the amount paid by other payers, such as the Veterans Affairs, and the amount paid by consumers online, the Office of Inspector General (OIG) has found. The OIG recommends CMS determine whether the payments are “grossly excessive” and, if they are, seek legislative authority to add VES to the competitive bidding program, which most recently resulted in a 45% reduction in payments for certain HME. By adjusting the Medicare fee schedule, the government could have saved $14.4 million for each of the six years reviewed and beneficiaries about $3.6 million, according to the report.