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The Government Accountability Office insisted that Medicare officials “had the authority to pursue financial recoveries,” but did not use it. Medicare hires private firms to conduct many audits. Insurers said that in many cases the auditors were not well versed in the intricacies of Medicare. Moreover, they said, Medicare has not provided clear guidance on how to define important items like administrative costs.
Medicare officials said they found significant errors in bids from 18 of the 80 organizations audited last year. But the Government Accountability Office said “there is a low probability of the audits identifying intentional misrepresentations,” because Medicare relies heavily on actuaries who prepare the bids to certify their accuracy.
Under a 2001 law, every federal agency is supposed to have a program for “recovering any amounts erroneously paid to contractors.”The Bush administration told the Government
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