Review of Medicare Fee-for-Service Payments Made by Palmetto Government Benefit Administrators for Medicare Advantage Enrollees During Calendar Years 2007 and 2008

Medicare fee-for-service payments made by Palmetto Government Benefit Administrators (Palmetto), a Centers for Medicare & Medicaid Services contractor, to hospitals for inpatient services furnished to Medicare Advantage enrollees did not always comply with Federal regulations. Palmetto made $978,000 in unallowable payments to hospitals for inpatient claims for beneficiaries who were enrolled in Medicare Advantage plans.