OIG: DMERC fleeced Medicare of $4.7M

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Sunday, March 31, 2002

INDIANAPOLIS - The OIG recently reported that the Region B DMERC fleeced Medicare of nearly $4.7 million by overstating the following costs: pension, return on investment, executive salary increases, employee benefits, post-retirement health insurance and deferred compensation.

In its report, the OIG recommends AdminaStar Federal make financial adjustments of $2,171,529 (Part A), $1,602,931 (Part B) and $920,403 (DMERC) for fiscal years 1998-99.

AdminiStar officials have agreed to pay back nearly $2.6 million of the $4.7 million. In 1999, the OIG issued a similar report, charging AdminiStar with fleecing Medicare of nearly $3.1 million. HME

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