February 2009

Medicare: Improvements Needed to Address Improper Payments in Home Health

Medicare spending on home health totaled $12.9 billion in 2006, up 44% from 2002. Concerns have been raised that improper payments from practices indicating fraud and abuse may have contributed to Medicare home health spending and utilization. The Government Accountability Office (GAO) was asked to examine the growth in Medicare home health spending and utilization and the benefits vulnerability to improper payments. GAO focused on states with the highest growth in Medicare home health spending or utilization; fraudulent and abusive practices contributing to recent spending and utilization; and administrative issues that make it vulnerable to improper payments. GAO analyzed Medicare claims data; reviewed Medicare laws and regulations and CMS documents; and interviewed stakeholders and contractors that administer and protect the home health benefit.