Combating Medicare Parts C and D Fraud, Waste, and Abuse
January 2018
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Combating Medicare Parts C and D Fraud, Waste, and Abuse
January 2018
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Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
TABLE OF CONTENTS |
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TABLE OF CONTENTS |
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Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
ACRONYMS
The following acronyms are used throughout the course.
ACRONYM |
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CFR |
Code of Federal |
Regulations |
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CMS |
Centers for Medicare & Medicaid Services |
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EPLS |
Excluded Parties List System |
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FCA |
False Claims Act |
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FDRs |
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FWA |
Fraud, Waste, and Abuse |
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HIPAA |
Health Insurance Portability and Accountability Act |
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LEIE |
List of Excluded Individuals and Entities |
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MA |
Medicare Advantage |
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MAC |
Medicare Administrative Contractor |
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MLN |
Medicare Learning Network® |
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NPI |
National Provider Identifier |
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OIG |
Office of Inspector General |
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PBM |
Pharmacy Benefits Manager |
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WBT |
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ACRONYMS
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
TITLE
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TITLE
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
INTRODUCTION
INTRODUCTION PAGE 1
The Combating Medicare Parts C and D Fraud, Waste, and Abuse course is brought to you by the Medicare Learning Network®
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INTRODUCTION
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
INTRODUCTION PAGE 2
The Medicare Learning Network® (MLN) offers free educational materials for health care professionals on the Centers for Medicare
&Medicaid Services (CMS) programs, policies, and initiatives. Get quick access to the information you need.
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Publications & Multimedia |
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Events & Training |
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Newsletters & Social Media |
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Continuing Education |
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INTRODUCTION
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
INTRODUCTION PAGE 3
This training assists Medicare Parts C and D plan Sponsors’ employees, governing body members, and their
•42 Code of Federal Regulations (CFR) Section 422.503(b)(4)(vi)(C)
•42 CFR Section 423.504(b)(4)(vi)(C)
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•Section 50.3.2 of the Compliance Program Guidelines (Chapter 9 of the Medicare Prescription Drug Benefit Manual and Chapter 21 of the Medicare Managed Care Manual)
Sponsors and their FDRs are responsible for providing additional specialized or refresher training on issues posing FWA risks based on the employee’s job function or business setting.
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Changes to the Medicare Advantage and the Medicare Prescription Drug |
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Chapter 9 of the Medicare Prescription Drug Benefit Manual |
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Chapter 21 of the Medicare Managed Care Manual |
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INTRODUCTION
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
INTRODUCTION PAGE 4
Why Do I Need Training?
Every year billions of dollars are improperly spent because of FWA. It affects
Combating FWA is everyone’s responsibility! As an individual who provides health or administrative services for Medicare enrollees, every action you take potentially affects Medicare enrollees, the Medicare Program, or the Medicare Trust Fund.
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INTRODUCTION
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
INTRODUCTION PAGE 5
Training Requirements: Plan Employees, Governing Body Members, and
Certain training requirements apply to people involved in Medicare Parts C and D. All employees of Medicare Advantage Organizations (MAOs) and Prescription Drug Plans (PDPs) (collectively referred to in this course as “Sponsors”) must receive training for preventing, detecting, and correcting FWA.
FWA training must occur within 90 days of initial hire and at least annually thereafter.
More information on other Medicare Parts C and D compliance trainings and answers to common questions is available on the CMS website.
Learn more about Medicare Part C
Medicare Part C, or Medicare Advantage (MA), is a health insurance option available to Medicare beneficiaries. Private,
Learn more about Medicare Part D
Medicare Part D, the Prescription Drug Benefit, provides prescription drug coverage to Medicare beneficiaries enrolled in Part A and/or Part B who enroll in a Medicare Prescription Drug Plan (PDP) or an MA Prescription Drug
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INTRODUCTION
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
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FWA Training Requirements Exception
There is one exception to the FWA training and education requirement. FDRs meet the FWA training and education requirements if they met the FWA certification requirement through either:
•Accreditation as a supplier of Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS)
•Enrollment in Medicare Part A (hospital) or B (medical) Program
If you are unsure if this exception applies to you, contact your management team for more information.
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INTRODUCTION
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
INTRODUCTION PAGE 7
Navigating and Completing This Course
Anyone providing health or administrative services to Medicare enrollees must satisfy general compliance and FWA training requirements. You may use this WBT course to satisfy the FWA requirements.
This course consists of two lessons and a
your certificate. If you do not successfully complete the course, you can review the course material and retake the
This course uses cues at various times to provide additional information and functionality. For more information on using these cues, adjusting your screen resolution and suggested browser settings, select “HELP”.
You do not have to complete the course in one session; however, you must complete at least one lesson before exiting the course. You can complete the entire course in about 30 minutes. After you successfully complete this course, you receive instructions on how to print your certificate.
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INTRODUCTION
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
INTRODUCTION PAGE 8
Course Objectives
When you complete this course, you should correctly:
•Recognize FWA in the Medicare Program
•Identify the major laws and regulations pertaining to FWA
•Recognize potential consequences and penalties associated with violations
•Identify methods of preventing FWA
•Identify how to report FWA
•Recognize how to correct FWA
Select the “MAIN MENU” button to return to the Main Menu. Then, select “Lesson 1: What Is FWA?”
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INTRODUCTION
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 1: WHAT IS FWA?
LESSON 1 PAGE 1
Lesson 1: Introduction and Learning Objectives
This lesson describes fraud, waste, and abuse (FWA) and the laws that prohibit it. It should take about 10 minutes to complete. Upon completing the lesson, you should be able to correctly:
•Recognize FWA in the Medicare Program
•Identify the major laws and regulations pertaining to FWA
•Recognize potential consequences and penalties associated with violations
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LESSON 1: WHAT IS FWA?
Combating Medicare Parts C and D Fraud, Waste, and Abuse Medicare Learning Network®
LESSON 1 PAGE 2
Fraud
Fraud is knowingly and willfully executing, or attempting to execute, a scheme or artifice to defraud any health care benefit program or to obtain, by means of false or fraudulent pretenses, representations, or promises, any of the money or property owned by, or under the custody or control of, any health care benefit program.
In other words, fraud is intentionally submitting false information to the Government or a Government contractor to get money or a benefit.
The Health Care Fraud Statute makes it a criminal offense to knowingly and willfully execute a scheme to defraud a health care benefit program. Health care fraud is punishable by imprisonment up to 10 years. It is also subject to criminal fines up to $250,000.
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LESSON 1: WHAT IS FWA?
Combating Medicare Parts C and D Fraud, Waste, and Abuse Medicare Learning Network®
LESSON 1 PAGE 3
Waste and Abuse
Waste includes practices that, directly or indirectly, result in unnecessary costs to the Medicare Program, such as overusing services. Waste is generally not considered to be caused by criminally negligent actions but rather by the misuse of resources.
Abuse includes actions that may, directly or indirectly, result in unnecessary costs to the Medicare Program. Abuse involves paying for items or services when there is no legal entitlement to that payment, and the provider has not knowingly or intentionally misrepresented facts to obtain payment.
For the definitions of fraud, waste, and abuse, refer to Section 20, Chapter 21 of the Medicare Managed Care Manual and Chapter 9 of the Prescription Drug Benefit Manual on the Centers for Medicare & Medicaid Services (CMS) website.
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Chapter 21 of the Medicare Managed Care Manual |
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Chapter 9 of the Prescription Drug Benefit Manual |
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LESSON 1: WHAT IS FWA?
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 1 PAGE 4
Examples of FWA
Examples of actions that may constitute Medicare fraud include:
•Knowingly billing for services not furnished or supplies not provided, including billing Medicare for appointments the patient failed to keep
•Billing for nonexistent prescriptions
•Knowingly altering claim forms, medical records, or receipts to receive a higher payment
Examples of actions that may constitute Medicare waste include:
•Conducting excessive office visits or writing excessive prescriptions
•Prescribing more medications than necessary for treating a specific condition
•Ordering excessive laboratory tests
Examples of actions that may constitute Medicare abuse include:
•Unknowingly billing for unnecessary medical services
•Unknowingly billing for brand name drugs when generics are dispensed
•Unknowingly excessively charging for services or supplies
•Unknowingly misusing codes on a claim, such as upcoding or unbundling codes
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LESSON 1: WHAT IS FWA?
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 1 PAGE 5
Differences Among Fraud, Waste, and Abuse
There are differences among fraud, waste, and abuse. One of the primary differences is intent and knowledge. Fraud requires intent to obtain payment and the knowledge the actions are wrong. Waste and abuse may involve obtaining an improper payment or creating an unnecessary cost to the Medicare Program but do not require the same intent and knowledge.
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LESSON 1: WHAT IS FWA?
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
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Understanding FWA
To detect FWA, you need to know the law.
The following pages provide
•Civil False Claims Act, Health Care Fraud Statute, and Criminal Fraud
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•Stark Statute (Physician
•Exclusion from all Federal health care programs
•Health Insurance Portability and Accountability Act (HIPAA)
For details about specific laws, such as safe harbor provisions, consult the applicable statute and regulations.
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LESSON 1: WHAT IS FWA?
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Medicare Learning Network®
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Civil False Claims Act (FCA)
The civil provisions of the FCA make a person liable to pay damages to the Government if he or she knowingly:
•Conspires to violate the FCA
•Carries out other acts to obtain property from the Government by misrepresentation
•Conceals or improperly avoids or decreases an obligation to pay the Government
•Makes or uses a false record or statement supporting a false claim
•Presents a false claim for payment or approval
For more information, refer to 31 United States Code (USC) Sections
Damages and Penalties
Any person who knowingly submits false claims to the Government is liable for three times the Government’s damages caused by the violator plus a penalty.
EXAMPLES
A Medicare Part C plan in Florida:
•Hired an outside company to review medical records to find additional diagnosis codes it could submit to increase risk capitation payments from CMS
•Was informed by the outside company that certain diagnosis codes previously submitted to Medicare were undocumented or unsupported
•Failed to report the unsupported diagnosis codes to Medicare
•Agreed to pay $22.6 million to settle FCA allegations
The
•Used marketers to recruit individuals for medically unnecessary office visits
•Promised free, medically unnecessary equipment or free food to entice individuals
•Charged Medicare more than $1.7 million for the scheme
•Was sentenced to 37 months in prison
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LESSON 1: WHAT IS FWA?
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
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Civil FCA (continued)
Whistleblowers
A whistleblower is a person who exposes information or activity that is deemed illegal, dishonest, or violates professional or clinical standards.
Protected: Persons who report false claims or bring legal actions to recover money paid on false claims are protected from retaliation.
Rewarded: Persons who bring a successful whistleblower lawsuit receive at least 15 percent, but not more than 30 percent, of the money collected.
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LESSON 1: WHAT IS FWA?
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
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Health Care Fraud Statute
The Health Care Fraud Statute states, “Whoever knowingly and willfully executes, or attempts to execute, a scheme or artifice to defraud any health care benefit program … shall be fined under this title or imprisoned not more than 10 years, or both.”
Conviction under the statute does not require proof the violator had knowledge of the law or specific intent to violate the law. For more information, refer to 18 USC Sections
EXAMPLES
A Pennsylvania pharmacist:
•Submitted claims to a Medicare Part D plan for
•Pleaded guilty to health care fraud
•Received a
The owner of multiple Durable Medical Equipment (DME) companies in New York:
•Falsely represented themselves as one of a nonprofit health maintenance organization’s (that administered a Medicare Advantage plan) authorized vendors
•Provided no DME to any beneficiaries as claimed
•Submitted almost $1 million in false claims to the nonprofit; $300,000 was paid
•Pleaded guilty to one count of conspiracy to commit health care fraud
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18 USC Sections |
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LESSON 1: WHAT IS FWA?
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 1 PAGE 10
Criminal Health Care Fraud
Persons who knowingly make a false claim may be subject to:
•Criminal fines up to $250,000
•Imprisonment for up to 20 years
If the violations resulted in death, the individual may be imprisoned for any term of years or for life.
For more information, refer to 18 USC Section 1347.
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LESSON 1: WHAT IS FWA?
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Medicare Learning Network®
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Damages and Penalties |
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receiving, offering, or paying remuneration (including any kickback, |
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bribe, or rebate) for referrals for services that are paid, in whole or in |
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• Imprisonment up to 5 years |
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For more information, refer to 42 USC Section |
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For more information, refer to the Social Security Act (the |
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EXAMPLE
From 2012 through 2015, a physician operating a pain management practice in Rhode Island:
•Conspired to solicit and receive kickbacks for prescribing a highly addictive version of the opioid Fentanyl
•Reported patients had breakthrough cancer pain to secure insurance payments
•Received $188,000 in speaker fee kickbacks from the drug manufacturer
•Admitted the kickback scheme cost Medicare and other payers more than $750,000
The physician must pay more than $750,000 restitution and is awaiting sentencing.
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Social Security Act (the Act), Section 1128B(b) |
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LESSON 1: WHAT IS FWA?
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 1 PAGE 12 |
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Stark Statute (Physician |
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Damages and Penalties |
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The Stark Statute prohibits a physician from making referrals for |
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comply with the Stark Statute are not payable. A penalty |
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EXAMPLE
A California hospital was ordered to pay more than $3.2 million to settle Stark Law violations for maintaining 97 financial relationships with physicians and physician groups outside the fair market value standards or that were improperly documented as exceptions.
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Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
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Civil Monetary Penalties (CMP) Law
The Office of Inspector General (OIG) may impose civil penalties for several reasons, including:
•Arranging for services or items from an excluded individual or entity
•Providing services or items while excluded
•Failing to grant OIG timely access to records
•Knowing of and failing to report and return an overpayment
•Making false claims
•Paying to influence referrals
For more information, refer to 42 USC
Damages and Penalties
The penalties can be around $15,000 to $70,000 depending on the specific violation. Violators are also subject to three times the amount:
•Claimed for each service or item or
•Of remuneration offered, paid, solicited, or received
EXAMPLE
A California pharmacy and its owner agreed to pay over $1.3 million to settle allegations they submitted unsubstantiated claims to Medicare Part D for brand name prescription drugs the pharmacy could not have dispensed based on inventory records.
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LESSON 1: WHAT IS FWA?
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 1 PAGE 14
Exclusion
No Federal health care program payment may be made for any item or service furnished, ordered, or prescribed by an individual or entity excluded by the OIG. The OIG has authority to exclude individuals and entities from federally funded health care programs and maintains the List of Excluded Individuals and Entities (LEIE).
The U.S. General Services Administration (GSA) administers the Excluded Parties List System (EPLS), which contains debarment actions taken by various Federal agencies, including the OIG. You may access the EPLS on the System for Award Management (SAM) website.
When looking for excluded individuals or entities, check both the LEIE and the EPLS since the lists are not the same. For more information, refer to 42 USC Section
EXAMPLE
A pharmaceutical company pleaded guilty to two felony counts of criminal fraud related to failure to file required reports with the U.S. Food and Drug Administration concerning oversized morphine sulfate tablets. The pharmaceutical firm executive was excluded based on the company’s guilty plea. At the time the unconvicted executive was excluded, there was evidence he was involved in misconduct leading to the company’s conviction.
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LESSON 1: WHAT IS FWA?
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 1 PAGE 15
Health Insurance Portability and Accountability Act (HIPAA)
HIPAA created greater access to health care insurance, strengthened the protection of privacy of health care data, and promoted standardization and efficiency in the health care industry.
HIPAA safeguards deter unauthorized access to protected health care information. As an individual with access to protected health care information, you must comply with HIPAA.
For more information, visit the HIPAA webpage.
Damages and Penalties
Violations may result in Civil Monetary Penalties. In some cases, criminal penalties may apply.
EXAMPLE
A former hospital employee pleaded guilty to criminal HIPAA charges after obtaining protected health information with the intent to use it for personal gain. He was sentenced to 12 months and 1 day in prison.
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HIPAA webpage |
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LESSON 1: WHAT IS FWA?
Combating Medicare Parts C and D Fraud, Waste, and Abuse
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Lesson 1 Summary
There are differences among fraud, waste, and abuse (FWA). One of the primary differences is intent and knowledge. Fraud requires the person have intent to obtain payment and the knowledge his or her actions are wrong. Waste and abuse may involve obtaining an improper payment but not the same intent and knowledge.
Laws and regulations exist that prohibit FWA. Penalties for violating these laws may include:
•Civil Monetary Penalties
•Civil prosecution
•Criminal conviction, fines, or both
•Exclusion from all Federal health care program participation
•Imprisonment
•Loss of professional license
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LESSON 1: WHAT IS FWA?
Combating Medicare Parts C and D Fraud, Waste, and Abuse
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LESSON 1 PAGE 17
Lesson 1 Review
Now that you completed Lesson 1, let’s do a quick knowledge check. Your
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LESSON 1: WHAT IS FWA?
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 1 PAGE 18
Knowledge Check
Select the correct answer.
Which of the following requires intent to obtain payment and the knowledge the actions are wrong?
○A. Fraud
○B. Abuse
○C. Waste
CORRECT
ANSWER
A
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LESSON 1: WHAT IS FWA?
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 1 PAGE 19
Knowledge Check
Select the correct answer.
Which of the following is NOT potentially a penalty for violation of a law or regulation prohibiting fraud, waste, and abuse (FWA)?
○A. Civil Monetary Penalties
○B. Deportation
○C. Exclusion from participation in all Federal health care programs
CORRECT
ANSWER
B
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LESSON 1: WHAT IS FWA?
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
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You completed Lesson 1: What Is FWA?
Now that you have learned about FWA and the laws and regulations prohibiting it, let’s look closer at your role in the fight against FWA.
Select the “MAIN MENU” button to return to the course Main Menu. Then, select “Lesson 2: Your Role in the Fight Against FWA” to begin Lesson 2.
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LESSON 1: WHAT IS FWA?
Combating Medicare Parts C and D Fraud, Waste, and Abuse
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
LESSON 2 PAGE 1
Lesson 2: Introduction and Learning Objectives
This lesson explains the role you can play in fighting against fraud, waste, and abuse (FWA), including your responsibilities for preventing, reporting, and correcting FWA. It should take about 10 minutes to complete. Upon completing the lesson, you should correctly:
•Identify methods of preventing FWA
•Identify how to report FWA
•Recognize how to correct FWA
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
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LESSON 2 PAGE 2
Where Do I Fit In?
As a person providing health or administrative services to a Medicare Part C or Part D enrollee, you are likely an employee of a:
•Sponsor (Medicare Advantage Organization [MAO] or a Prescription Drug Plan [PDP])
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•Downstream entity (Examples: pharmacies, doctor’s office, firms providing agent/broker services, marketing firms, and call centers)
•Related entity (Examples: Entity with common ownership or control of a Sponsor, health promotion provider, or SilverSneakers®)
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
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LESSON 2 PAGE 3
Where Do I Fit In? (continued)
I am an employee of a Part C Plan Sponsor or an employee of a Part C Plan Sponsor’s
The Part C Plan Sponsor is a CMS Contractor. Part C Plan Sponsors may enter into contracts with FDRs. This stakeholder relationship flow chart shows examples of functions relating to the Sponsor’s Medicare Part C contracts.
Examples of
I am an employee of a Part D Plan Sponsor or an employee of a Part D Plan Sponsor’s
The Part D Plan Sponsor is a CMS Contractor. Part D Plan Sponsors may enter into contracts with FDRs. This stakeholder relationship flow chart shows examples of functions that relate to the Sponsor’s Medicare Part D contracts.
Examples of
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
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LESSON 2 PAGE 4
What Are Your Responsibilities?
You play a vital part in preventing, detecting, and reporting potential FWA, as well as Medicare noncompliance.
•FIRST, you must comply with all applicable statutory, regulatory, and other Medicare Part C or Part D requirements, including adopting and using an effective compliance program.
•SECOND, you have a duty to the Medicare Program to report any compliance concerns and suspected or actual violations of which you may be aware.
•THIRD, you have a duty to follow your organization’s Code of Conduct that articulates your and your organization’s commitment to standards of conduct and ethical rules of behavior.
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 5
How Do You Prevent FWA?
•Look for suspicious activity
•Conduct yourself in an ethical manner
•Ensure accurate and timely data and billing
•Ensure coordination with other payers
•Know FWA policies and procedures, standards of conduct, laws, regulations, and CMS’ guidance
•Verify all received information
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 6
Stay Informed About Policies and Procedures
Know your entity’s policies and procedures.
Every Sponsor and
Standards of Conduct should describe the Sponsor’s expectations that:
•All employees conduct themselves in an ethical manner
•Appropriate mechanisms are in place for anyone to report noncompliance and potential FWA
•Reported issues will be addressed and corrected
Standards of Conduct communicate to employees and FDRs compliance is everyone’s responsibility, from the top of the organization to the bottom.
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
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Report FWA |
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Every Sponsor must have a mechanism for |
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Everyone must report suspected instances of FWA. Your Sponsor’s Code of |
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reporting potential FWA by employees and FDRs. |
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Conduct should clearly state this obligation. Sponsors may not retaliate |
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Each Sponsor must accept anonymous reports |
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against you for making a good faith effort in reporting. |
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and cannot retaliate against you for reporting. |
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Report any potential FWA concerns you have to your compliance department |
Review your organization’s materials for the ways |
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or your Sponsor’s compliance department. Your Sponsor’s compliance |
to report FWA. |
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department will investigate and make the proper determination. Often, |
When in doubt, call your Compliance Department |
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or FWA Hotline. |
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FWA. They may also maintain an FWA Hotline. |
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 8
Reporting FWA Outside Your Organization
If warranted, Sponsors and FDRs must report potentially fraudulent conduct to Government authorities, such as the Office of Inspector General (OIG), the U.S. Department of Justice (DOJ), or CMS.
Individuals or entities who wish to voluntarily disclose
Details to Include When Reporting FWA
When reporting suspected FWA, include:
•Contact information for the information source, suspects, and witnesses
•Alleged FWA details
•Alleged Medicare rules violated
•The suspect’s history of compliance, education, training, and communication with your organization or other entities
WHERE TO REPORT FWA
HHS Office of Inspector General:
Phone:
Fax:
Email: HHSTips@oig.hhs.gov
Online: Forms.OIG.hhs.gov/hotlineoperations/index.aspx
For Medicare Parts C and D:
National Benefit Integrity Medicare Drug Integrity Contractor (NBI MEDIC) at
CMS Hotline at
Medicare beneficiary website:
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
HYPERLINK URL |
LINKED TEXT/IMAGE |
HHSTips@oig.hhs.gov |
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Forms.OIG.hhs.gov/hotlineoperations/index.aspx |
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abuse.html |
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 9
Correction
Once fraud, waste, or abuse is detected, promptly correct it. Correcting the problem saves the Government money and ensures your compliance with CMS requirements.
Develop a plan to correct the issue. Ask your organization’s compliance officer about the development process for the corrective action plan. The actual plan is going to vary, depending on the specific circumstances. In general:
•Design the corrective action to correct the underlying problem that results in FWA program violations and to prevent future noncompliance.
•Tailor the corrective action to address the particular FWA, problem, or deficiency identified. Include timeframes for specific actions.
•Document corrective actions addressing noncompliance or FWA committed by a Sponsor’s employee or FDR’s employee, and include consequences for failure to satisfactorily complete the corrective action.
•Monitor corrective actions continuously to ensure effectiveness.
Corrective Action Examples
Corrective actions may include:
•Adopting new prepayment edits or document review requirements
•Conducting mandated training
•Providing educational materials
•Revising policies or procedures
•Sending warning letters
•Taking disciplinary action, such as suspension of marketing, enrollment, or payment
•Terminating an employee or provider
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 10
Indicators of Potential FWA
Now that you know about your role in preventing, reporting, and correcting FWA, let’s review some key indicators to help you recognize the signs of someone committing FWA.
The following pages present potential FWA issues. Each page provides questions to ask yourself about different areas, depending on your role as an employee of a Sponsor, pharmacy, or other entity involved in delivering Medicare Parts C and D benefits to enrollees.
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 11
Key Indicators: Potential Beneficiary Issues
•Does the prescription, medical record, or laboratory test look altered or possibly forged?
•Does the beneficiary’s medical history support the services requested?
•Have you filled numerous identical prescriptions for this beneficiary, possibly from different doctors?
•Is the person receiving the medical service the beneficiary (identity theft)?
•Is the prescription appropriate based on the beneficiary’s other prescriptions?
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 12
Key Indicators: Potential Provider Issues
•Are the provider’s prescriptions appropriate for the member’s health condition (medically necessary)?
•Does the provider bill the Sponsor for services not provided?
•Does the provider write prescriptions for diverse drugs or primarily for controlled substances?
•Is the provider performing medically unnecessary services for the member?
•Is the provider prescribing a higher quantity than medically necessary for the condition?
•Does the provider’s prescription have their active and valid National Provider Identifier on it?
•Is the provider’s diagnosis for the member supported in the medical record?
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 13
Key Indicators: Potential Pharmacy Issues
•Are drugs being diverted (drugs meant for nursing homes, hospice, and other entities being sent elsewhere)?
•Are the dispensed drugs expired, fake, diluted, or illegal?
•Are generic drugs provided when the prescription requires dispensing brand drugs?
•Are PBMs billed for unfilled or never picked up prescriptions?
•Are proper provisions made if the entire prescription is not filled (no additional dispensing fees for split prescriptions)?
•Do you see prescriptions being altered (changing quantities or Dispense As Written)?
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 14
Key Indicators: Potential Wholesaler Issues
•Is the wholesaler distributing fake, diluted, expired, or illegally imported drugs?
•Is the wholesaler diverting drugs meant for nursing homes, hospices, and Acquired Immune Deficiency Syndrome (AIDS) clinics, marking up the prices, and sending to other smaller wholesalers or pharmacies?
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 15
Key Indicators: Potential Manufacturer Issues
•Does the manufacturer promote
•Does the manufacturer knowingly provide samples to entities that bill Federal health care programs for them?
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 16
Key Indicators: Potential Sponsor Issues
•Does the Sponsor encourage or support inappropriate risk adjustment submissions?
•Does the Sponsor lead the beneficiary to believe the cost of benefits is one price, when the actual cost is higher?
•Does the Sponsor offer beneficiaries cash inducements to join the plan?
•Does the Sponsor use unlicensed agents?
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 17
Lesson 2 Summary
•As a person providing health or administrative services to a Medicare Part C or D enrollee, you play a vital role in preventing fraud, waste, and abuse (FWA). Conduct yourself ethically, stay informed of your organization’s policies and procedures, and keep an eye out for key indicators of potential FWA.
•Report potential FWA. Every Sponsor must have a mechanism for reporting potential FWA. Each Sponsor must accept anonymous reports and cannot retaliate against you for reporting.
•Promptly correct identified FWA with an effective corrective action plan.
50
LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 18
Lesson 2 Review
Now that you completed Lesson 2, let’s do a quick knowledge check. The
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 19
Knowledge Check
Select the correct answer.
A person drops off a prescription for a beneficiary who is a “regular” customer. The prescription is for a controlled substance with a quantity of 160. This beneficiary normally receives a quantity of 60, not 160. You review the prescription and have concerns about possible forgery. What is your next step?
○A. Fill the prescription for 160
○B. Fill the prescription for 60
○C. Call the prescriber to verify the quantity
○D. Call the Sponsor’s compliance department
○E. Call law enforcement
CORRECT
ANSWER
C
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 20
Knowledge Check
Select the correct answer.
Your job is to submit a risk diagnosis to the Centers for Medicare & Medicaid Services (CMS) for the purpose of payment. As part of this job, you use a process to verify the data is accurate. Your immediate supervisor tells you to ignore the Sponsor’s process and to adjust or add risk diagnosis codes for certain individuals. What should you do?
○A. Do what your immediate supervisor asked you to do and adjust or add risk diagnosis codes
○B. Report the incident to the compliance department (via compliance hotline or other mechanism)
○C. Discuss your concerns with your immediate supervisor
○D. Call law enforcement
CORRECT
ANSWER
B
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 21
Knowledge Check
Select the correct answer.
You are in charge of paying claims submitted by providers. You notice a certain diagnostic provider (“Doe Diagnostics”) requested a substantial payment for a large number of members. Many of these claims are for a certain procedure. You review the same type of procedure for other diagnostic providers and realize Doe Diagnostics’ claims far exceed any other provider you reviewed. What should you do?
○A. Call Doe Diagnostics and request additional information for the claims
○B. Consult with your immediate supervisor for next steps or contact the compliance department (via compliance hotline, Special Investigations Unit [SIU], or other mechanism)
○C. Reject the claims
○D. Pay the claims
CORRECT
ANSWER
B
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 22
Knowledge Check
Select the correct answer.
You are performing a regular inventory of the controlled substances in the pharmacy. You discover a minor inventory discrepancy. What should you do?
○A. Call local law enforcement
○B. Perform another review
○C. Contact your compliance department (via compliance hotline or other mechanism)
○D. Discuss your concerns with your supervisor
○E. Follow your pharmacy’s procedures
CORRECT
ANSWER
E
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
LESSON 2 PAGE 23
You completed Lesson 2: Your Role in the Fight Against FWA
Now that you have learned how to fight FWA, it’s time to assess your knowledge.
Select the “MAIN MENU” button to return to the course Main Menu. Then, select
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LESSON 2: YOUR ROLE IN THE FIGHT AGAINST FWA
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
This brief
Choose an answer for each question by selecting the button next to your answer. You must select an answer before advancing to the next question. You can only move forward in the
You may print your score when you finish the
Select the “NEXT” button to begin the
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Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
Question 1 of 10
Select the correct answer.
Once a corrective action plan is started, the corrective actions must be monitored annually to ensure they are effective.
○A. True
○B. False
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Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
Question 2 of 10
Select the best answer.
Ways to report potential fraud, waste, and abuse (FWA) include:
○A. Telephone hotlines
○B. Mail drops
○C.
○D. Special Investigations Units (SIUs)
○E. All of the above
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Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
Question 3 of 10
Select the correct answer.
Any person who knowingly submits false claims to the Government is liable for five times the Government’s damages caused by the violator plus a penalty.
○A. True
○B. False
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Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
Question 4 of 10
Select the correct answer.
These are examples of issues that should be reported to a Compliance Department: suspected fraud, waste, and abuse (FWA); potential health privacy violation; unethical behavior; and employee misconduct.
○A. True
○B. False
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Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
Question 5 of 10
Select the correct answer.
Bribes or kickbacks of any kind for services that are paid under a Federal health care program (which includes Medicare) constitute fraud by the person making as well as the person receiving them.
○A. True
○B. False
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Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
Question 6 of 10
Select the correct answer.
Waste includes any misuse of resources, such as the overuse of services or other practices that, directly or indirectly, result in unnecessary costs to the Medicare Program.
○A. True
○B. False
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Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
Question 7 of 10
Select the correct answer.
Abuse involves payment for items or services when there is no legal entitlement to that payment and the provider has not knowingly or intentionally misrepresented facts to obtain payment.
○A. True
○B. False
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Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
Question 8 of 10
Select the correct answer.
Some of the laws governing Medicare Parts C and D fraud, waste, and abuse (FWA) include the Health Insurance Portability and Accountability Act (HIPAA), the False Claims Act, the
○A. True
○B. False
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Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
Question 9 of 10
Select the correct answer.
You can help prevent fraud, waste, and abuse (FWA) by doing all of the following:
•Look for suspicious activity
•Conduct yourself in an ethical manner
•Ensure accurate and timely data and billing
•Ensure you coordinate with other payers
•Keep up to date with FWA policies and procedures, standards of conduct, laws, regulations, and the Centers for Medicare & Medicaid Services (CMS) guidance
•Verify all information provided to you
○A. True
○B. False
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Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
Question 10 of 10
Select the best answer.
What are some of the penalties for violating fraud, waste, and abuse (FWA) laws?
○A. Civil Monetary Penalties
○B. Imprisonment
○C. Exclusion from participation in all Federal health care programs
○D. All of the above
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Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
APPENDIX A: RESOURCES
RESOURCES PAGE 1 OF 1
Disclaimers
This
This course was prepared as a service to the public and is not intended to grant rights or impose obligations. This course may contain references or links to statutes, regulations, or other policy materials. The information provided is only intended to be a general summary. It is not intended to take the place of either the written law or regulations. We encourage readers to review the specific statutes, regulations, and other interpretive materials for a full and accurate statement of their contents.
The Medicare Learning Network® (MLN)
The Medicare Learning Network®, MLN Connects®, and MLN Matters® are registered trademarks of the U.S. Department of Health & Human Services (HHS).
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APPENDIX A: RESOURCES
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
Glossary
For glossary terms, visit the Centers for Medicare & Medicaid Services Glossary.
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Centers for Medicare & Medicaid Services Glossary |
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APPENDIX A: RESOURCES
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
APPENDIX B: JOB AIDS
Job Aid A: Applicable Laws for Reference
Civil False Claims Act 31 USC Sections
Civil Monetary Penalties Law 42 USC Section
Criminal False Claims Act 18 USC Section 287
Exclusion 42 USC Section
Criminal Health Care Fraud Statute 18 USC Section 1347
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APPENDIX B: JOB AIDS
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
Job Aid B: Resources
Health Care Fraud Prevention and Enforcement Action Team Provider Compliance Training
OIG’s Provider
Avoiding Medicare Fraud & Abuse: A Roadmap for Physicians
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Avoiding Medicare Fraud & Abuse: A Roadmap for Physicians |
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APPENDIX B: JOB AIDS
Combating Medicare Parts C and D Fraud, Waste, and Abuse
Medicare Learning Network®
Job Aid C: Where to Report Fraud, Waste, and Abuse (FWA)
HHS Office of Inspector General:
Phone:
Fax:
Email: HHSTips@oig.hhs.gov
Online: Forms.OIG.hhs.gov/hotlineoperations/index.aspx
For Medicare Parts C and D:
National Benefit Integrity Medicare Drug Integrity Contractor (NBI MEDIC) at
CMS Hotline at
HHS and U.S. Department of Justice (DOJ):
HYPERLINK URL/ |
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HHSTips@oig.hhs.gov |
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Forms.OIG.hhs.gov/hotlineoperations/index.aspx |
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APPENDIX B: JOB AIDS