Medicare Payments for Parenteral Nutrition Services Provided by Option Care Enterprises, Inc.

OBJECTIVE

Parenteral nutrition is a form of intravenous feeding that delivers nutrients directly into a vein. Medicare Part B covers the reasonable and necessary costs of durable medical equipment, prosthetics, orthotics, and supplies, which include parenteral nutrition (Social Security Act §§ 1861(s)(8) and 1862(a)(1)(A)). For CYs 2022 and 2023, Medicare paid more than $487 million for parenteral nutrition. For both years, CMS’s Comprehensive Error Rate Testing reports identified improper payments due to a lack of documentation showing medical necessity, coding errors, and insufficient or no documentation. We will determine whether Medicare paid suppliers of durable medical equipment, prosthetics, orthotics, and supplies for parenteral nutrition in accordance with Medicare requirements.

TIMELINE

• June 16, 2025
  Announced
• Today
  Office of Audit Services In-Progress
• Est FY2027
  Estimated Fiscal Year for Project Completion

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