Compliance Guidance - Medicare Advantage

The U.S. Department of Health and Human Services Office of Inspector General released new Medicare Advantage Industry Segment-Specific Compliance Program Guidance. 

Compliance Risk Areas

1.     Access to Care (Network Adequacy and Prior Authorization)

Strategies include:

  • Quarterly update and third-party verification of provider directory information

  • Review claim submission volumes of in-network providers

  • Review, track, and follow-up on provider complaints

  • Perform time and distance analyses of contracted providers

  • Review trends in claims and prior authorization denials

  • Review any artificial intelligence or algorithm-based tools

 2.    Marketing and Enrollment

Strategies include:

  • Avoid deceptive marketing, including improper financial incentives that influence enrollment

  • Oversight of third parties conducting marketing on behalf of the organization, including review and approval of marketing and communication materials

  • Monitor enrollment volumes outside of AEP and verify eligibility for special enrollment periods.

  • Document fair market value determinations

  • Review, monitor, and ensure accuracy of payment data and recipients, including third parties

  • Provide marketing and enrollment compliance-focused training for agents, brokers, TPMOs, and employees

3.    Risk Adjustment

Strategies include:

  • Implement audits of diagnosis data, before and after submission to CMS

  • Review reporting of high-risk diagnosis codes

  • Evaluate and oversee any in-home HRA or chart review programs

  • Investigate allegations of risk adjustment coding fraud

  • Education and training

 4.   Quality of Care

Strategies include:

  • Ensure the integrity of the data used for Star Ratings’ quality and performance measures

  • Ensure Medicare enrollees can access medically necessary care regardless of their location, identity, and other demographic factors

  • Ensure network avoids providers who are excluded by OIG or who have suspended licenses

 5.   Oversight of Third Parties

Strategies include:

  • Due diligence and risk evaluation on third parties before delegating Medicare program functions

  • Include compliance rights and obligations in agreements with third parties

  • Ongoing oversight of third parties based on risk evaluation

 6.   Compliance Programs Within Vertically Integrated Organizations and Other Ownership Structures

Strategies include:

  • Ensure compliance leaders have sufficient expertise and have access to senior leadership

  • Include MA functions in organization compliance risk assessments

  • Implement systems and processes to ensure medical loss ratio is accurately calculated and verified

 7.   Submission of Accurate Claims

Strategies include:

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