Home Administrative Billing & Reimbursement BlueCard® Health and Wellness Medical PEAR portal Pharmacy Products Quality Management

CFID continues to keep down health care costs

March 1, 2012

[

Insurance fraud, waste, and abuse are major factors in the rising cost of health care in America today ? costing consumers as much as $1 out of every $7 spent on health care. The Corporate and Financial Investigations Department (CFID) at IBC is doing its part to address this problem by identifying, investigating, and reporting suspicious cases of abusive practices to law enforcement authorities. In addition, recovery of overpaid claim dollars is pursued, regardless of the reasons.

2011 in review

Last year the CFID received 986 allegations of fraud, waste, abuse, or aberrant billing practices, with 116 of these allegations coming from providers or members. Because of these allegations, 106 fraud and abuse investigations were initiated. Additionally, audits of 116,106 hospital claims and over 247 professional and ancillary service provider audits were conducted, as well as over 3,550 pharmacy drug utilization desk audits and 549 pharmacy retail site audits. Evidence gathered in 2011 resulted in 42 referrals to law enforcement or regulatory authorities. Of this number, five pertained to members, 13 to doctors, and eight related to prescription fraud.

Trends and results

Through the use of sophisticated data mining software tools, the CFID analyzes all claims submitted by medical providers, facilities, and pharmacies and compares them against member enrollment data and overall provider information. Trends, patterns, and aberrant billing practices are selected for in-depth audits or investigations. The most often used fraud schemes were:

  • billing for services not rendered;
  • "up-coding" procedure codes on claims submitted in order to receive a higher reimbursement;
  • prescription fraud.

Because of the investigations and audits performed by the CFID, over $58.9 million was recovered with an additional $6.8 million in overpaid claims identified but not yet recovered. Grand jury indictments and criminal information filings were brought against 23 individuals last year. Eleven individuals pled guilty or were convicted of health care fraud violations and received probation or incarceration ranging from six to 120 months in prison.

We need your help

Although the CFID continues its efforts to ensure that health care costs are appropriate, we still need your help. The data mining software tools and fraud hotline both provide valuable leads, but there is no substitute for your own vigilance. Allegations received from our provider community are extremely valuable, and we ask you to contact the CFID if you are suspicious of any health care activity. To do so, please call our toll-free Fraud and Compliance Hotline at 1-866-282-2707 or go to the Anti-Fraud page on our website

]

This content was prepared for the Provider News Center and may not be reproduced in any way without the express written permission of Independence Blue Cross. Independence Blue Cross is an independent licensee of the Blue Cross and Blue Shield Association.
Connect with us     Facebook     Twitter     Flickr     YouTube     Walk the Talk    Independence Pinterest    Independence LinkedIn    Independence Instagram Site Map        Anti-Fraud        Privacy Policy        Legal        Disclaimer
© 2023 Independence Blue Cross.
Independence Blue Cross is an independent licensee of the Blue Cross and Blue Shield Association, serving the health insurance needs of Philadelphia and southeastern Pennsylvania.