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OIG: Medicare Contractor Overpaid $39.2 Million for Diabetics’ Supplies
Health Leaders Media

Medicare inappropriately paid $39.2 million for test strips and lancets for diabetic beneficiaries in 2007 because its administrative contractor serving 12 northeastern states failed to require proper authorization, the Office of Inspector General said last week. The OIG audit looked only at claims paid by NHIC Corp, one of four regional Medicare contractors that review and pay durable medical equipment (DME) claims under Part B.

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