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Medicare Part B: Reliability of Claims Processing Across Four Carriers

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Report Type Reports and Testimonies
Report Date Aug. 11, 1993
Report No. PEMD-93-27
Subject
Summary:

How fair is the process used by insurance companies to approve or deny Medicare Part B claims? In its review of four insurance companies, GAO found that the computer programs used to evaluate claims produced consistent results and were economical. The programs, however, were not equipped to handle claims involving more subjective criteria, such as deciding whether medical care is appropriate or not. These cases were delegated to claims examiners, typically high-school graduates with no medical background who were expected to decide whether doctors' services were "medically necessary" on up to 400 claims daily. GAO concludes that three factors taken together--the time constraints under which decisions about medical necessity were made, the decentralized way in which medical policies were being developed and instituted, and weaknesses in some quality control methods--raise doubts about the system's ability to treat Medicare claims consistently.

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