Recalled Device Costs, Test Payments Focus In OIG Work Plan
The Health & Human Services’ watchdog branch plans to look at a spike in recall costs; Medicare’s progress in implementing lab-test payment reforms; and an ongoing review of FDA’s work on device cybersecurity issues.
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Medicare was billed $1.5bn, and beneficiaries paid $140 million in copayments, for procedures associated with replacing seven models of defective or failed cardiac implants, according to preliminary results from an ongoing review by the US Department of Health and Human Services’ Office of Inspector General. The "early alert" from OIG’s investigation blamed a lack of device identifiers on claims forms for masking device performance data.
CMS issued a long-awaited final rule that will establish a new market-based approach to setting lab-test payment rates. The Medicare agency was convinced to delay implementation by one year, to 2018, and to make other tweaks to its policy that industry stakeholders say will make the system more accurate.
HHS’s Office of the Inspector General will examine FDA oversight of networked medical devices used in hospitals. The office’s work plan also includes scrutiny of Medicare payments for replacement devices, power mobility devices, orthotic braces and more.