National Government Services, Inc., Made Medicare Payments for Diabetic Test Strips When Beneficiaries Had Not Nearly Exhausted Previously Dispensed Supplies

National Government Services, Inc. (NGS), the durable medical equipment Medicare administrative contractor for Jurisdiction B, made payments for calendar year 2013 to suppliers that dispensed diabetic test strips when the beneficiaries had not nearly exhausted test strips previously dispensed by different suppliers. On the basis of our sample results, we estimated that $3.2 million of the $4.4 million that NGS paid to suppliers may have been unallowable for Medicare reimbursement.