On March 24, 2013, the Centers for Medicare and Medicaid Services ("CMS") issued a proposed rule that would increase the bounty to persons who report false or incorrect billing by providers. At present, the bounty is at a maximum of $1,000.00; however, CMS proposes to increase the bounty up to $10 million. This means that a disgruntled employee who has information about improper relationships or billings could collect a payment from the government up to that amount.
The government is committed to fighting fraud and abuse of Medicare and Medicaid. The statistics published are that the government recovers six dollars for every one dollar it expends in its fraud fighting efforts. With the expansion of governmental influence on the health care system through the Affordable Care Act, CMS is looking for ways to recoup every dollar it can. Thus, all providers should be looking at their compliance programs and the auditing of their billings to Medicare and Medicaid.