While a predictive analytics system has increased recovery and prevention of improper Medicare payments, an audit by the Department of Health and Human Services Office of Inspector General finds updated procedures for the Fraud Prevention System (FPS) are needed to improve savings.

The Small Business Jobs Act of 2010 requires HHS to use predictive modeling and other analytics technologies to identify improper Medicare claims that providers submit for reimbursement and prevent payment of such claims. The Centers for Medicare and Medicaid Services this week announced that FPS has identified or prevented $820 million in inappropriate Medicare payments during the first three years of its operation.

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