2004 Medicare Error Rates

2004 Medicare Error Rates

Regulations and Publications
Medicare paid $18.4 Billion in overpayments in 2004. This is about 9% of Medicare spending for the year. No effort was made to distinguish fraudulent overpayments from accidental overpayments, but the 2004 measures support the estimate that about 10% of healthcare is inappropriate. Of course these measures do not estimate how much of the care that was paid for was inappropriate. Inappropriate care is probably three times the size of inappropriate billing.