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Senators introduce fraud legislation

Senators introduce fraud legislation

WASHINGTON – Sens. Mike Braun, R-Ind., and Bill Cassidy, R-La., have introduced legislation to target irregular billing for certain DME and other diagnostic products. 

The “Medicare Transaction Fraud Prevention Act” directs CMS to create a two-year pilot to oversee Medicare-covered purchasing of DME and other diagnostic testing related products for the 5% of beneficiaries that already receive electronic notices. 

The bill, which would ask beneficiaries to verify certain purchases, would give CMS increased access to vital predictive data, test proof-of-concept for future use, and save hundreds of millions of dollars without overhauling their system, according to Braun and Cassidy. 

Medicare loses approximately $60 billion annually due to fraud, errors, and abuse involving both predatory health care professionals and anonymous organized criminals, the lawmakers say. 

“An annual loss of $60 billion is unacceptable,” Braun said. “It’s time for CMS to strengthen their fraud detection process in order to stop the hemorrhaging of the Medicare trust fund.” 

Rep. David Schweikert, R- Ariz., has introduced a companion bill in the House of Representatives. 

The bill does not authorize any funding, and beneficiaries can opt out at any time.


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