Information You Need:  CMS Fraud Prevention Initiative

If you help people with Medicare, Medicaid and the Children's Health Insurance 
Program (CHIP), you should know about an expanded federal government effort to 
reduce fraud and other improper payments in these health care programs to help 
ensure their long-term viability.

Significant progress in the fight against health care fraud has already been 
made as shown by the federal government’s recovery of a record $4 billion last 
year from people who attempted to defraud seniors and taxpayers.  The 
Affordable Care Act provides additional resources and tools to enable the 
Centers for Medicare & Medicaid Services (CMS) to expand efforts to prevent and 
fight fraud, waste and abuse. The CMS Fraud Prevention Initiative aims to 
ensure that correct payments are made to legitimate providers for covered 
appropriate and reasonable services in all federal health care programs.

Fraud prevention efforts focus on moving CMS beyond its former “pay and chase” 
recovery operations to a more proactive “prevention and detection” model that 
will help prevent fraud and abuse before payment is made.  A good example is 
the recent CMS announcement that for the first time, through the use of 
innovative predictive modeling technology similar to that used by credit card 
companies, the agency will have the ability to use risk scoring techniques to 
flag high risk claims and providers for additional review and take action to 
stop payments and remove providers from the program when necessary.

Yet, as important as these aggressive new initiatives are, the first and best 
line of defense against fraud remains the health care consumer.  You can help 
by making sure that Medicare beneficiaries have the information they need to 
identify and report suspected fraud.  This information is available in the CMS 
Fraud Prevention Toolkit on the web at 
https://www.cms.gov/Partnerships/04_FraudPreventionToolkit.asp.

The web site contains materials to help you inform Medicare beneficiaries about 
how to protect themselves from becoming a victim of fraud and how to report it. 
 Thanks in advance for your assistance.



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