07/23/2026

OIG Audit Identifies $19.5 Million in Improper Medicare Part B Payments

The U.S. Department of Health and Human Services Office of Inspector General (OIG) found that Medicare Administrative Contractor Novitas Solutions improperly paid an estimated $19.5 million for certain Part B services provided to beneficiaries residing in nursing homes. The audit reviewed evaluation and management, psychotherapy, and podiatry claims from 2018–2019 and found documentation or coverage issues in a significant portion of sampled claims.

While the findings focused on Medicare contractor oversight rather than nursing homes themselves, the report highlights continued federal scrutiny of Medicare Part B billing and documentation practices in post-acute and long-term care settings. OIG recommended strengthened claims review processes and additional provider education to help prevent future improper payments.