Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Medicare Payments for Services Provided to Incarcerated Beneficiaries in the State of Maryland," (A-03-02-00004)

December 2, 2002

Complete Text of Report is available in PDF format (426 KB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


The objective of our review was to determine whether Medicare fee-for-service claims paid in Maryland during the 3-year period of January 1, 1997 through December 31, 1999 were in compliance with Federal regulations and Centers for Medicare & Medicaid Services (CMS) guidelines.  The State of Maryland was one of 10 states selected for review.  We found 70 percent of our sample of 100 claims in Maryland were appropriate.  However, two claims totaling $2,328 were unallowable according to Medicare reimbursement requirements. The claims were submitted on behalf of beneficiaries who were inmates in local detention centers at the time of service. We have determined these claims to be unallowable because in the absence of third party coverage, neither the county detention centers nor their health care contractors make any attempt to collect health care costs from inmates.  We could not determine the allowability of 28 claims totaling $4,133.