Medicare “waste” and “improper payments” are no strangers to the governmental spotlight. This time it shines on them in the form of legislation just introduced by Sen. Charles Grassley (R-IA) called the Fighting Medicare Payment Fraud Act of 2009.

This bill is one you may want to watch closely. The reason: it would allow payment delays of up to one year if the government suspects waste, fraud or abuse – essentially circumnavigating current prompt payment rules.

“Because of this prompt payment rule, the government puts itself in a position of having to pay and chase Medicare fraud, instead of working to prevent it in the first place,” Grassley says in a press release introducing the bill. So, Grassley proposes to “…give the Secretary of Health and Human Services authority to extend the time period in which payments must be made under the prompt payment rule if the Secretary determines there is a likelihood of fraud, waste or abuse. With this additional time, the Secretary would be required to conduct more detailed reviews of the claims in question to make sure they are supposed to be paid.” Read the rest of this entry »