CMS announced that their Fraud Prevention System identified or prevented $820 million in improper payments during its first three years.
The Fraud Prevention Service, or FPS, was launched in 2011. In 2014 alone, the system identified $454 million in inappropriate payments, which resulted in administrative actions against 2,000 providers. These actions included having billing privileges revoked or being referred to law enforcement, among other consequences.
CMS has plans to ramp up FPS in the future. The agency wants to use the system to identify early leads for intervention for Medicare Administrative Contractors as well as to stop claims for medical review by Recovery Audit Contractors prior to payment.
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