Hospice Sues Medicare Over Alleged Recouped Overpayment Errors

A hospice sued the Biden administration over allegations an agency unlawfully attempted to recoup millions in purported overpayments through inaccurate sampling and extrapolation methods.

The complaint, filed in the US District Court for the Western District of Missouri, claims that a Centers for Medicare & Medicaid Services contractor had extrapolated the amount the Medicare program incorrectly paid to a handful of beneficiaries under the agency’s hospice benefit to the full “universe” of claims made to Kansas City-based Crossroads Hospice from Nov. 1, 2008, through Oct. 31, 2010.

Although the contractor had determined the amount allegedly paid in error to ...