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Medicare Payment Errors The Office of the Inspector General (OIG) reported that it estimates that approximately $11.9 billion was overpaid nationally to providers during FY 2000. The overpayments were attributed to medical unnecessary services, services not documented, upcoding of services, and payment for non-covered services. The Department of Health and Human Services estimates that the Medicare overpayment error rate from FY 1996 to FY 2000 has been halved from 14% to 6.8%.
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