Study: Medicare contractors vulnerable to conflict

Study: Medicare contractors vulnerable to conflict

MIAMI (AP) — A new government report warns that contractors who are paid tens of millions of dollars to root out Medicare fraud are submitting bids to evaluate companies with which they are doing business, sometimes their own parent companies.

The report by the U.S. Department of Health and Human Services’ inspector-general blames a flawed bidding process and inadequate conflict-of-interest policies for the trend.

The study says that two-thirds of the companies that bid on contracts during a study that began in October 2010 had financial ties to claims processors — or even processed claims themselves.

The study examined bids from roughly 100 potential contractors and subcontractors, identifying nearly 2,000 relationships that posed potential conflicts.

Lawmakers say the potential for such conflict has grown as federal health officials have reorganized fraud contracts.