Review of Medicare Credit Balances in Michigan

This final report disclosed that Medicare accounts receivable credit balances included overpayments totaling an estimated $8.6 million in the State of Michigan. The estimated overpayments were associated with 56 hospitals in Michigan serviced by Blue Cross and Blue Shield of Michigan (BCBSM) as the medicare fiscal intermediary. The overpayments existed because both the hospitals and BCBSM did not review credit balances and process adjustments timely. We are recommending recovery of the overpayments and procedural improvements to ensure that the hospitals and BCBSM perform more timely reviews.