Statistically, Medicare-related claims make up around 10-15% of your total claims volume at any given time.
It doesn’t seem like much when you consider it in that light, so often busy insurance executives may fail to give Medicare compliance the emphasis it deserves. Here are some important reasons why both the CEO and the VP of Claims should bring Medicare compliance up a notch or two in their list of priorities.
It’s a money issue, not just a compliance issue.
Unlike the other risks insurance executives are used to, Medicare compliance can have a direct impact on the company’s bottom line.
Penalties for non-compliance are strong, and are becoming more readily assessed through more stringent and more frequently ordered auditing procedures. If the carrier is found to be non-compliant on a Medicare-related personal injury claim, fines can be as high as double the initial settlement amount, plus interest.
On higher-value claims, that kind of penalty can put a serious dent into annual financials. Read more