One study by CMS found that up to 70% of payments for some medical equipment should not have been due to a failure to document the medical necessity for the equipment provided under CMS guidelines. In 2008, the errors resulted in $2.8 billion. A representative of CMS indicated that the numbers were not actual fraud, but the error rates made fraud more likely. A new program is of regional bidding for DME suppliers is expected to begin in 2010.
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