7 Recalled, Failed Devices Cost Medicare $1.5 Billion: IG Report
The HHS Inspector General (IG) says in a report that services related to the replacement of seven recalled and prematurely failed medical devices cost Medicare $1.5 billion during calendar years 2005 through 2014. The IG also estimated $140 million in beneficiary copayment and deductible liabilities related to the recalled and prematurely failed devices and their related services and procedures. (The study looked at seven unidentified cardiac devices from three manufacturers.)
The IG said it was unable to make the cost estimates from claims data alone.
The report recommends that the Center for Medicare and Medicaid Services (1) continue to work with the Accredited Standards Committee X12 to ensure that the device identifier is included on the next version of claim forms and (2) require hospitals to use condition codes 49 or 50 on claims for reporting a device replacement procedure if the procedure resulted from a recall or premature failure independent of whether there was a device provided at no cost or with a credit.