CMS is developing a pilot program to determine how many Medicare fraud cases are taking place in home health agencies. A contractor search is currently underway to help implement the new initiative. Many Medicare fraud experts are commending the endeavor, believing the move to be positive in an industry with long-standing allegations of fraud.
Statistically valid estimates of the rate of fraud in Medicare do not currently exist for home health agencies. The new contractor will focus on developing a methodology to estimate the extent of probable fraud of home health agencies in the Medicare fee-for-service program. The initial pilot will focus on agencies in Florida, which accounted for $2.1 billion of total Medicare home health spending in 2013.