CMS to End Contracts with Three MICs
The Centers for Medicare & Medicaid Services (CMS) won’t renew three of its five Medicaid Integrity Contractor (MIC) contracts in the wake of criticism that contractors’ work cost more than they return. The Department of Health and Human Services’ (HHS) Office of Inspector General (OIG) also expressed concern the work didn’t fit with redesign efforts of the National Medicaid Audit Program to focus Medicaid audits to a collaborative process with states.
OIG and the Government Accountability Office (GAO) have both criticized the MICs for costing more than they return. In a report released last week, the GAO said that from June 2007 through February 2012 MICs cost $102 million and returned less than $20 million. Dr. Peter Budetti, CMS program integrity chief, said CMS is working on ceasing the contracts under standing rules so there is no more additional cost.