Report finds fraud and errors in Medicare payments for medical equipment

The rate of improper Medicare payments for wheelchairs and other durable medical equipment is much higher than the government has estimated, according to a report from the Dept. of Health and Human Services’ Inspector General.

The report found an “error rate” of almost 29 percent in a sample of claims paid in 2006 under Medicare’s multibillion-dollar durable medical equipment program. The Centers for Medicare and Medicaid Services had estimated a rate of 7.5 percent, or about $700 million in improper payments. Some of these improper payments were the result of insufficient documentation or lack of medical necessity, but others were the result of fraud.