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Followup Review of Durable Medical Equipment, Prosthetics, Orthotics, and Supplies Provided by Suppliers During Inpatient Stays

Announced on  | Last Modified on  | Project Number: OAS-24-09-005

OBJECTIVE

Overlapping claims can happen when an enrollee receives a durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) item during an inpatient stay at an acute-care hospital. In general, certain items, supplies, and services furnished to inpatients are covered under Medicare Part A and should not be billed separately to Medicare Part B (42 CFR §§ 409.10; Medicare Claims Processing Manual, Chapter 3 § 10.4). Therefore, DMEPOS claims for enrollees who received DMEPOS items during an inpatient stay (excluding admission and discharge dates) in a hospital should not be billed to Medicare Part B, and any Medicare payments made on those claims would be considered overpayments. Prior OIG reviews and investigations have identified this area as at risk for noncompliance with Medicare billing requirements. For this followup audit, we will review Medicare payments to certain types of inpatient hospitals to determine whether claims billed to Part B for certain DMEPOS items provided during inpatient stays were made in accordance with Federal requirements. Additionally, we will review the CMS Common Working File system edits that should deny claims for DMEPOS items furnished during an inpatient stay.

TIMELINE

  • July 15, 2024
    Announced
  • October 24, 2025
    Complete

    Followup Review of Durable Medical Equipment, Prosthetics, Orthotics, and Supplies Provided by Suppliers During Inpatient Stays has been marked as complete. This audit resulted in 5 recommendations.

REPORT PUBLISHED

26-A-09-006.01 to CMS - Open Unimplemented
Update expected on 04/23/2026
We recommend that the Centers for Medicare & Medicaid Services direct the DME MACs to recover from suppliers up to $22,671,778 in identified improper payments for our audit period that are within the 4-year reopening period in accordance with CMS's policies and procedures.

26-A-09-006.02 to CMS - Open Unimplemented
Update expected on 04/23/2026
We recommend that the Centers for Medicare & Medicaid services direct the DME MACs to recommend that the suppliers refund to enrollees up to $5,853,922 in deductible and coinsurance amounts that may have been incorrectly collected from them or from someone on their behalf.

26-A-09-006.03 to CMS - Open Unimplemented
Update expected on 04/23/2026
We recommend that the Centers for Medicare & Medicaid Services instruct the DME MACs to notify, as CMS deems appropriate, suppliers that received an overpayment or overpayments to consider conducting one or more internal audits or investigations based on the risks identified by this audit to identify any similar overpayments the supplier might have received and return any identified overpayments to the Medicare program.

26-A-09-006.04 to CMS - Open Unimplemented
Update expected on 04/23/2026
We recommend that the Centers for Medicare & Medicaid Services identify any DMEPOS claims after our audit period for items provided to enrollees during inpatient stays and direct the DME MACs to recover any improper payments.

26-A-09-006.05 to CMS - Open Unimplemented
Update expected on 04/23/2026
We recommend that the Centers for Medicare & Medicaid Services review system edits to determine whether any refinements are necessary to prevent improper payments to suppliers for DMEPOS items provided to enrollees during inpatient stays.

View in Recommendation Tracker

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