What to make of the federal government extending its moratorium on allowing new medical providers to bill Medicare and Medicaid in six states?
Does CMS still need to get a handle on pre-screening providers before allowing them to bill?
Or is fraud is so rampant in those areas that CMS must weed out existing bad actors before allowing new providers to enter?
Shutting down enrollment is a drastic move that can hurt honest providers. It also can limit patient access to needed care. But it’s a necessary step for the federal government to effectively manage fraud in its programs.
The areas affected by the extension include home-healthcare and medical transport — two that are rife with fraud.
Congress gave CMS the power to shut down enrollments a few years ago, but CMS hesitated at first. Nudged by Congress, CMS started restricting enrollments in limited areas where fraud was most out of control.
The enrollments seem to be a qualified success, but it will take a few years to fully know if provider fraud has started moving downward.
In the meantime, CMS is taking a smart approach to using its power to restrict enrollments. Moratoria are targeted. The latest extensions, for example, impose home-health enrollment limits in Florida on just three of the worst counties. Plus, CMS now allows exceptions to the moratoria if providers pass heightened screening.
Taking action before crooked providers can bill is the best answer to the old “pay-and-chase” model. It should also deter many would-be cheaters, especially organized fraud rings looking to soak federal programs.