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Audit of the Office of Medicaid (MassHealth) - Review of Claims Submitted by Dr. Frederick Wagner Jr.

September 24, 2019 · Office of Medicaid (MassHealth) · Read the full official report on mass.gov ↗ · official site ↗

Published September 24, 2019 Audit covers January 1, 2014 – December 31, 2017 Under Suzanne M. Bump · 2011–2023

In plain English
The auditor found that Dr. Wagner was paid by MassHealth for vision care claims that did not have enough documentation, and recommended that he repay at least $310,112 total.
source
“Dr. Frederick Wagner Jr. had inadequate documentation to support at least $301,936 in vision care claims.”
Read the plain-English breakdown
What is this?

This is a Massachusetts State Auditor performance audit of MassHealth payments to Dr. Frederick Wagner Jr. for vision care services from 2014 through 2017.

“OSA has conducted an audit of MassHealth claims for vision care services paid to Dr. Frederick Wagner Jr. for the period January 1, 2014 through December 31, 2017.”
Why was it audited?

The auditor reviewed whether Dr. Wagner billed MassHealth correctly for services like nursing-facility visits, travel, ordering eyeglasses, and dispensing eyeglasses.

“The purpose of this audit was to determine whether Dr. Wagner properly billed MassHealth for these services, including traveling to nursing facilities and ordering and dispensing eyeglasses for MassHealth members.”
Why it matters

MassHealth is a major public program serving many Massachusetts residents and using a large share of the state budget, so incorrect payments affect public money and trust.

“Medicaid expenditures represent approximately 39% of the Commonwealth’s total annual budget.”
What's in it for me?

If you are a taxpayer or MassHealth member, this audit is about whether public healthcare money was spent properly and whether patient records supported the care billed.

“As with any government program, public confidence is essential to the success and continued support of the state’s Medicaid program.”
The bottom line

The audit concluded that Dr. Wagner did not properly bill MassHealth in some cases, mainly because records did not adequately support the claims and some eyeglass dispensing claims were improper.

“Did Dr. Wagner properly bill MassHealth for vision care services, including transportation and ordering and dispensing of eyewear, provided to its members?”
What happens next

The auditor recommended repayment, and MassHealth said it would recover overpayments from Dr. Wagner.

“MassHealth will recoup overpayments from Dr. Wagner as a result of the audit findings.”
Why it's significant

The audit is significant because many patients in the sample had conditions that could make it hard for them to advocate for themselves, making accurate records especially important.

“These vulnerable populations of MassHealth members are often poorly served and unable to advocate for themselves.”
Jargon, unpacked

A “chief complaint” means the recorded reason for a patient visit, such as the symptom, condition, diagnosis, or other reason the provider saw the patient.

“A concise statement describing the symptom, problem, condition, diagnosis, physician recommended return, or other factor that is the reason for the encounter, usually stated in the patient’s own words.”
Identified in this audit - source-verified
$310,112

1 figure(s) pending source verification - not shown

What the Auditor checked

What the Auditor found

Dr. Wagner lacked adequate documentation to support at least $301,936 in vision care claims.
recordkeeping/documentationinternal controls

Why it matters: The unsupported claims may have resulted in overpayments and could negatively affect continuity of care for vulnerable MassHealth members.

Standard: CMS Documentation Guidelines for Evaluation and Management Services; 130 CMR 433.409(D)(1); 130 CMR 450.205(A); 101 CMR 315; 130 CMR 450.307; 130 CMR 450.231(B). ( Section 433.409(D)(1) of Title 130 of the Code of Massachusetts Regulations; 130 CMR 450.205(A); 130 CMR 450.307; 130 CMR 450.231(B) )

4 recommendations
  • Dr. Wagner should collaborate with MassHealth to repay the $301,936 discussed in this finding.agency: disagreed
  • Dr. Wagner should document the chief complaint or reasons for the services provided in members’ medical records.agency: disagreed
  • Dr. Wagner should properly document the required patient medical history, exam details, and medical decision-making when using E/M codes, or bill using eye exam codes.agency: disagreed
  • Dr. Wagner should submit claims using the actual dates on which vision care is provided.
Agency response & Auditor reply
Agency: "Although Dr. Wagner denies the conclusion that his medical records lack documentation of a chief complaint, it should be noted that MassHealth regulations do not mandate this for reimbursement."
Auditor: "Despite the assertion of Dr. Wagner’s legal counsel, our review of a sample of Dr. Wagner’s medical records showed that for 70 of the 180 claims we reviewed, the corresponding patient records did not contain the details necessary to clearly articulate the medical necessity of the services provided."
Dr. Wagner improperly billed $8,176 for eyeglass dispensing and fitting services.
recordkeeping/documentationinternal controlsvendor oversight

Why it matters: Improper dispensing claims caused overpayments and incomplete medical records could negatively affect continuity of care.

Standard: 130 CMR 402.416; 130 CMR 402.417(A); 130 CMR 402.418(B). ( 130 CMR 402.416; 130 CMR 402.417(A); 130 CMR 402.418(B) )

3 recommendations
  • Dr. Wagner should collaborate with MassHealth to repay the $8,176 discussed in this finding.agency: no response
  • Dr. Wagner should only submit claims for dispensing services after fitting the new eyeglasses to a MassHealth member.agency: no response
  • Dr. Wagner should maintain proper documentation for dispensing services, including nursing facility consultation, measurements, and evidence of fitting.agency: no response
Agency response & Auditor reply
Agency: "Dr. Wagner did not provide a response to this finding."

Verified dollar findings

Improper payments identified $310,112

Money paid out that the audit found should not have been - overpayments, unallowable and nonreimbursable charges, improper claims.

$301,936 - overpayment
$8,176 - overpayment
Projected / estimated $304,265 not in headline

Estimated or sample-projected amounts - shown separately because they are not a hard-identified dollar figure.

$286,738 - projected overpayment
$15,198 - projected overpayment
$2,329 - projected overpayment

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