Review of Outpatient Claims Processed by Noridian Administrative Services That Included Procedures for the Insertion of Multiple Units of the Same Type of Medical Device in Calendar Years 2008 and 2009

Of the 28 claims that we reviewed, Medicare paid 21correctly for outpatient claims processed by Noridian Administrative Services, LLC (Noridian), that included procedures for the insertion of multiple units of the same type of medical device. However, for the remaining seven claims, Noridian made overpayments to hospitals totaling approximately $39,000. Incorrect payments occurred because hospitals had inadequate controls to ensure that they billed accurately for claims that included the insertion of medical devices. In addition, Medicare payment controls in the Fiscal Intermediary Shared System were not always adequate to prevent or detect incorrect payments.