Medicare Secondary Payer Program

Actions Needed to Realize Savings Gao ID: T-HEHS-95-92 February 23, 1995

The Medicare secondary payer program ensures that other health and accident insurers pay medical costs for covered beneficiaries before Medicare kicks in. The program is a major cost containment measure, saving Medicare about $3 billion in fiscal year 1994. GAO testified that several measures could help maximize the savings available under the program. First, because program recovery efforts of already paid Medicare claims have, in effect, been negated by a recent appeals court ruling, legislation is needed to ensure effective recovery of mistaken payments under the program. Second, GAO continues to urge that funding for the Medicare/Medicaid data bank be delayed until its potential value can be shown.



The Justia Government Accountability Office site republishes public reports retrieved from the U.S. GAO These reports should not be considered official, and do not necessarily reflect the views of Justia.