Doctors wary of Medicare audit plan's incentives

The AMA says it will work with state medical associations to make
sure the Medicare pilot program is fair.

By David Glendinning, AMNews staff. April 4, 2005.

Washington -- Physicians in three states are worried that a new type
of Medicare audit will amount to a federally sanctioned form
of "bounty hunting."

Starting in May, the Centers for Medicare & Medicaid Services will
hire recovery audit contractors to scour Medicare claims in
California, Florida and New York to make sure the government is
paying "appropriately" for services.

Although the participating firms will be responsible for finding both
overpayments and underpayments, the contractors will be paid based
only on how much overpayment they recoup from physicians and others.

If the pilot program is successful, it might be expanded to other
states..."

http://www.ama-assn.org/amednews/2005/04/04/gvl10404.htm