Medicare paid $718 million for improper mental health claims, auditors find

Nearly half of the payments Medicare made for Part B mental health services in 2003 didn’t meet Medicare requirements, the Office of Inspector General for Health and Human Services has found.

As a result, the OIG said in an April 2007 report, Medicare paid out $718 million in improper payments.

The OIG recommended that CMS “revise, expand and reissue its 2003 program memorandum on Part B mental health services with an increased emphasis on proper documentation and coding.”