Medicare Advantage Organizations Under Investigation for Fraud

Federal prosecutors are taking action against Medicare Advantage Organizations for alleged False Claims Act violations, while the OIG conducts audits revealing submission inaccuracies in risk adjustment diagnosis codes. Insights on the upcoming RADV rules from CMS are also discussed.

Federal prosecutors from the Department of Justice (DOJ) are prosecuting numerous large Medicare-Advantage Organizations (MAOs) under the False Claims Act. Simultaneously, auditors at the USDHHS Office of the Inspector General (OIG) have been conducting several “cookie-cutter” audits of risk adjustment diagnosis code submission accuracy at many other MAOs.

Although the OIG audits differ methodologically from traditional Risk Adjustment Data Validation (RADV) audits (the Centers for Medicare & Medicaid Services [CMS] has not finalized a single RADV audit since 2007), OIG risk adjustment audits are still audits. Each one has reached the same conclusion: “[the MAO] did not submit some diagnosis codes to CMS for use in the risk adjustment program in accordance with Federal requirements.”

For more information, refer to the New York Times article: Medicare Advantage Fraud Allegations.

While CMS has been uncertain about finalizing RADV audits since issuing a Notice of Proposed Rulemaking on November 1, 2018 (83 FR 54982), it now appears that CMS will release its final RADV rules on or before February 1, 2023.