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Focusing on Fraud in Health Care

While most claims payment errors are just the result of mere oversights, there continues to be a small number of health care providers who intentionally engage in conduct intended to defraud the Maryland Medical Assistance Program.  Health care fraud affects everyone, especially the recipients of care.  For that reason, Priority Partners Managed Care Organization (PPMCO) and the Maryland Department of Health and Mental Hygiene (DHMH) have joined forces in a commitment to prevent and detect health care fraud. 

Health care fraud is defined as any deliberate and dishonest act committed with the knowledge that it could result in an unauthorized benefit to the person committing the act or someone else who is similarly not entitled to the benefit.  Examples of health care fraud are:

  • Billing for items and services that have not been rendered;
  • Billing for services that have not been properly documented;
  • Billing for items and services that are not medically necessary;
  • Misrepresentation of the type or level of service provided;
  • Misrepresentation of the individual rendering service;  
  • Seeking payment or reimbursement for services rendered for procedures that are integral to other procedures performed on the same date of service (unbundling);  
  • Seeking increased payment or reimbursement for services that are correctly billed at a lower rate (upcoding);
  • Failing to render care that the practitioner is contractually obligated to provide to Medicaid recipients;
  • Providing substandard care;
  • Soliciting or receiving kickbacks in return for referring patients (with a few exceptions); or
  • Any action or inaction that is performed or withheld in violation of the provider’s contract with PPMCO or the Maryland Medical Assistance Program

In an effort to deter these and other instances of fraud, PPMCO’s Corporate Compliance Department routinely performs validation audits on statistical samples of claims. In addition, as a result of the recent expansion of the Compliance Department, plans are underway to broaden those audits to include encounter and utilization data assessments. PPMCO’s Corporate Compliance Department investigates all detected outliers and other deviations from standard practices, and reports all irregularities not later determined to be mere errors to DHMH and/or the Maryland Attorney General’s Office Medicaid Fraud Control Unit (“MFCU”).

PPMCO’s Corporate Compliance Department also investigates allegations of health care fraud it receives from Medicaid recipients and others and reports substantiated allegations to the MFCU. The MFCU may, in turn, perform its own fraud investigation and take action against those who are found to have committed fraud.

If you have questions about health care fraud or would like to report fraud committed against PPMCO, please contact the Corporate Compliance Program directly at 410-424-4996 or via email at compliance@jhhc.com.  You may also contact the DHMH Program Integrity Unit at 1-866-654-4421, or via email at: http://www.dhmh.state.md.us/mma/programintegrity/html/reportfraud.htm

You can remain anonymous, and all reports are kept confidential.