US Fraud Watchdogs Sound Alarm Over Spending on Skin Treatments

The meteoric rise in Medicare’s reimbursement of specialty wound treatments is prompting a rare call to action from federal fraud and abuse watchdogs.

A report released Monday by the US Department of Health and Human Services Office of Inspector General found that Medicare Part B spending on skin substitutes—which are artificial or biological materials used to repair damaged skin—rose by over 600% since 2022. This rise in spending, however, was not seen in Medicare Advantage, even though both programs have similar demographics.

The OIG claims this rise is partly attributed to traditional Medicare’s fee-for-service payment system, which often pays providers ...