Fraud, Waste & Abuse
Magellan takes provider fraud, waste and abuse seriously. Magellan promotes provider practices that are compliant with all federal and state laws. Our expectation is that providers will submit accurate claims, not abuse processes or allowable benefits, and exercise their best independent judgment when deciding which services to order for their patients.
Magellan does not tolerate fraud, waste or abuse, either by providers or staff. Accordingly, we have instituted extensive procedures to combat these problems. These procedures are wide-ranging and multi-faceted, focusing on education, prevention, detection and investigation of all types of fraud, waste and abuse in government programs.
Our policies in this area reflect that both Magellan and providers are subject to federal and state laws designed to prevent fraud and abuse in government programs (e.g. Medicaid and Medicare). Magellan complies with all applicable laws, including the Federal False Claims Act, state false claims laws, applicable whistleblower protection laws, the Deficit Reduction Act of 2005, the American Recovery and Reinvestment Act of 2009, the Patient Protection and Affordable Care Act of 2010 and applicable billing requirements for state and federally funded health care programs.
Understanding Fraud, Abuse, Waste and Overpayment
An intentional deception or misrepresentation made by a person with the knowledge that the deception could result in some unauthorized benefit to him/her or some other person. It includes any act that constitutes fraud under applicable federal or state law.
- Intentionally billing for services that were not provided
- Falsifying signatures
- Rounding up time spent with a member
- Altering claim forms
Provider practices that are inconsistent with sound fiscal, business, or medical practices, and result in an unnecessary cost to government-sponsored programs, and other health care programs/plans, or in reimbursement for services that are not medically necessary or that fail to meet professionally recognized standards for health care. It also includes recipient practices that result in unnecessary cost to federally and/or state-funded health care programs.
- Services that are billed by mistake
- Misusing codes: code on claim does not comply with national or local coding guidelines; not billed as rendered
- Billing for a non-covered service
- Providing services in a method that conflicts with regulatory requirements (e.g., exceeding the maximum number of patients allowed per group session)
- Retaining and failing to refund and report overpayments (e.g., if your claim was overpaid, you are required to report and refund the overpayment, and unpaid overpayments also are grounds for program exclusion)
Over-utilization of services or other practices that result in unnecessary costs.
- Using excessive services such as office visits
- Providing services that aren’t medically necessary
- Provider ordering excessive testing
Any funds that a person receives or retains under Medicare, Medicaid, SCHIP and other government funded health care programs to which the person, after applicable reconciliation, is not entitled under such health care program. It includes any amount that is not authorized to be paid by the health care program.
- Inaccurate or improper cost reporting
- Improper claiming practices
Reporting Fraud, Waste, and Abuse
Reports made to Magellan can be submitted via one of the following methods:
- Special Investigations Unit Hotline: 1-800-755-0850
- Special Investigations Unit Email: SIU@MagellanHealth.com
- Corporate Compliance Hotline: 1-800-915-2108
- Compliance Unit Email: Compliance@MagellanHealth.com
Contact Information for Fraud and Abuse Reporting
If you have knowledge of suspected Medicaid provider noncompliance, or of substandard quality of care for services paid for under the Louisiana Medicaid Coordinated System of Care Program, there are four ways to report this information to the state:
- Call toll-free 1-800-488-2917 for Provider Fraud Complaints or 1-888-342-6207 for Recipient Fraud complaints. Call long distance 1-318-487-5138 for Recipient Fraud complaints.
- Complete the appropriate form online and submit it electronically.
-Provider Fraud Form - http://ldh.la.gov/index.cfm/form/22
-Member Fraud Form - http://ldh.la.gov/index.cfm/form/23
- Print out the appropriate form (above), complete it, and mail it to:
Provider Fraud Complaint
Molina Healthcare Inc. SURS Department
8591 United Plaza Blvd
Baton Rouge, LA 70809
Member Fraud Complaint
Louisiana Department of Health
Customer Service Unit
P.O. Box 91278
Baton Rouge, LA 70821-9278
4. Fax the completed form (above) to 225-216-6129 for provider fraud complaint or 225-389-2610 for member fraud complaint
For more information about how to report fraud, waste, and/or abuse including overpayments see the Magellan Health website www.magellanhealth.com for Magellan’s FALSE CLAIMS LAWS AND WHISTLEBLOWER PROTECTIONS DRA Compliance Statement and link to the State False Claim Acts for state-by-state information about how to report fraud, waste, and/or abuse including overpayments.