GAO calls CMS’ Medicare Advantage encounter data into query

The Centers for Medicare and Medicaid Services (CMS) has made insufficient development in validating the completeness and precision of Medicare Advantage encounter data, a crucial component for administering accurate payments for the program, in accordance to a Government Accountability Office audit.

CMS gathers Medicare Advantage encounter data, detailed data about the care and health status of Medicare Advantage enrollees, to evaluate payments. Although, despite GAO’s 2014 suggestions that CMS completely assess data quality before use, auditors discovered that the agency has yet to take critical measures to make sure the encounter data is right and complete, making the Medicare Advantage program susceptible to improper payments and wasted taxpayer dollars.

“CMS has still to undertake tasks that fully deals Medicare Advantage encounter data precision, like reviewing medical records,” states the audit report. “Moreover, few health insurance and provider trade associations GAO interviewed voiced concerns about CMS’s capability to accurately identify diagnoses utilized for risk adjustment…To the extent that CMS is making payments deployed on data that haven’t been completely validated for completeness and accuracy, the soundness of billions of dollars in Medicare expenditures sustains to be unsubstantiated.”

A CMS spokesperson refused to particularly comment on the GAO’s findings and suggestions, and instead referred to the agency’s official written responses released in the audit report. Among those responses, CMS officials pointed out that they are working with Medicare Advantage agencies to refine how the methodology used to gain diagnoses data is applied.

Additionally, the agency claimed that it has started compiling basic statistics on the volume and consistency of data submissions and preparing automated summary reports for Medicare Advantage agencies demonstrating diagnosis information used for risk adjustment.

Specifically, CMS started phasing in patient diagnosis data from Medicare Advantage encounter data in its risk adjustment process in the year of 2015 and told the GAO it intends to depend completely on those data by the year of 2020.

Because it has primarily concentrated on collecting comprehensive encounter data for risk adjustment purposes, CMS officials also informed auditors that the agency has highly deferred planning for extra uses of the data.

Nevertheless, in accordance to the GAO, few stakeholder agencies have objected to the risk adjustment transition time frame, compelling that it does not permit sufficient time for a victorious transition. Still, CMS asserts that the multiyear transition time frame is reasonable.

Provided the agency’s limited progress, auditors claimed that they continue to believe that CMS should execute GAO’s July 2014 suggestion that the agency completely develop plans for the extra uses of Medicare Advantage encounter data.

“This latest GAO research proves once again that the encounter data system isn’t ready for full implementation,” stated House Ways and Means Committee Chairman Rep. Kevin Brady (R-Texas) in a written statement. “While the system was developed to ensure right payments for the millions of seniors who depend on Medicare Advantage, it won’t work with incomplete and inaccurate data and could lead to higher premiums or decreased benefits down the road. CMS must ensure this significant system is based on the right information so taxpayer dollars are going to Medicare recipients who require them most.”

Likewise, House Energy and Commerce Committee Chairman Rep. Greg Walden (R-Ore.) claimed in a written statement that the GAO report “raises more uncertainties about the encounter data system and either it is ready to perform its duties.”

While applauding that few improvements have been made since GAO’s 2014 report, Walden noted that “key suggestions from the government watchdog have still to be implemented” and voiced his support for the “GAO’s asserting that CMS should completely assess its data quality before implementing” the Medicare Advantage encounter data system.