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Audit of the Office of Medicaid (MassHealth) - Review of Vision Care Claims Paid to Dr. Khuong Nguyen

July 16, 2018 · Office of Medicaid (MassHealth) · Read the full official report on mass.gov ↗ · official site ↗

Published July 16, 2018 Audit covers July 1, 2011 – December 31, 2016 Under Suzanne M. Bump · 2011–2023

In plain English
The audit found that MassHealth paid Dr. Nguyen for vision care claims that were not always properly documented or billed, including questionable eyeglass-dispensing claims and unsupported services.
source
“The purpose of this audit was to determine whether these services provided to MassHealth members were properly supported by documentation and allowable in accordance with certain MassHealth regulations.”
Read the plain-English breakdown
What is this?

This is a Massachusetts State Auditor performance audit of vision care claims MassHealth paid to Dr. Khuong Nguyen for services from July 1, 2011 through December 31, 2016.

“OSA has conducted an audit of vision care claims paid to Dr. Khuong Nguyen for the period July 1, 2011 through December 31, 2016.”
Why was it audited?

The State Auditor reviewed these claims as part of its oversight role to identify fraud, waste, abuse, and improper Medicaid payments.

“The audit was conducted as part of OSA’s ongoing independent statutory oversight of the state’s Medicaid program.”
Why it matters

MassHealth is a large public healthcare program, and questionable payments mean public money may not be used as intended.

“Medicaid expenditures represent approximately 41% 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 dollars were spent properly and whether providers followed the rules.

“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. Nguyen did not properly bill MassHealth in all reviewed areas, citing missing records, questionable dispensing claims, and inadequate documentation.

“Did Dr. Nguyen properly bill MassHealth for vision care services he provided to its members?”
What happens next

MassHealth said it would work out the overpayment amounts and seek repayment after the final audit report.

“MassHealth will determine the overpayment amount and initiate recovery from Dr. Nguyen after the final audit report has been issued.”
Why it's significant

The largest specific issue was up to $108,166 in questionable eyeglass-dispensing payments, plus other findings involving missing or inadequate documentation.

“Dr. Nguyen was overpaid by as much as $108,166 on 3,858 billings for eyeglass dispensing services.”
Jargon, unpacked

“Dispensing services” means helping choose frames, measuring and ordering lenses and frames, fitting the finished glasses, checking that the person can see clearly, adjusting the glasses, and giving them to the member.

“The following are considered dispensing services: assisting a member in choosing appropriate frames, taking necessary measurements for ordering lenses and frames from the optical supplier, fitting the completed eyeglasses to the member, determining whether the member can see clearly through the eyeglasses, making necessary adjustments to the lenses and/or frames, and giving the member the eyeglasses.”

8 figure(s) pending source verification - not shown

What the Auditor checked

What the Auditor found

Dr. Nguyen did not keep medical records at his office for vision care services provided to youths in state-run facilities and programs.
recordkeeping/documentationinternal controls

Why it matters: Without medical records, MassHealth cannot verify whether the billed services were actually provided.

Standard: Section 402.418(C) of Title 130 of the Code of Massachusetts Regulations requires a medical record to be kept on file at the provider's office for vision care provided to members residing in public or private facilities. ( Section 402.418(C) of Title 130 of the Code of Massachusetts Regulations )

2 recommendations
  • Dr. Nguyen should keep documentation, whether in his EMR system or as hard copies, for vision care provided to youths residing in DCF programs and make it available upon request.
  • Dr. Nguyen should collaborate with MassHealth to determine the amount to be repaid for vision care that was not documented.
Agency response & Auditor reply
Agency: "We kept a written copy of the medical record at the facility and an encrypted electronic record in the office."
Auditor: "Although Dr. Nguyen states that he kept written records at the facilities and electronic records at his office, he could not produce a complete medical record (written or electronic) for 130 of the 180 sampled claims upon request."
Dr. Nguyen submitted questionable dispensing claims for eyeglasses that were not properly fitted, not ordered, ordered later, or duplicated.
internal controlsrecordkeeping/documentationvendor oversight

Why it matters: MassHealth may have unnecessarily paid Dr. Nguyen money that could have been used for other necessary services to members.

Standard: MassHealth Transmittal Letter VIS-37 and 130 CMR 402.416 require dispensing claims to be submitted only when vision care materials are delivered and properly fitted to the member after being ordered from the optical supplier. ( MassHealth Transmittal Letter VIS-37, dated May 2008; 130 CMR 402.416 )

2 recommendations
  • Dr. Nguyen should collaborate with MassHealth to determine the amount of dispensing services to be repaid.
  • Dr. Nguyen should submit claims for dispensing services for a MassHealth member only upon fitting the new eyeglasses to that member.
Agency response & Auditor reply
Agency: "Regarding dispensing fees, our procedures according to Masshealth regulations [CMR 402.416] were to check the prescription, adjust the frame if they were bent, tighten all screws."
Auditor: "Although Dr. Nguyen asserts that his dispensing procedures were in accordance with MassHealth regulations, 130 CMR 402.416 states that providers should submit claims for dispensing services only after eyeglasses have been ordered from an optical supplier and properly fitted to the member."
Dr. Nguyen did not adequately document services billed under higher-complexity evaluation and management codes.
recordkeeping/documentationinternal controls

Why it matters: There is inadequate assurance that the services met the requirements for higher-complexity procedure codes, creating a risk of overpayment.

Standard: 101 CMR 315.000 and Current Procedural Terminology Professional Edition 2017 require comprehensive history, comprehensive examination, and specified levels of medical decision-making for procedure codes 99328 and 99337. ( 101 CMR 315.000; American Medical Association’s Current Procedural Terminology Professional Edition 2017 )

2 recommendations
  • Dr. Nguyen should ensure that he properly documents the comprehensive medical history and comprehensive examination involved for each instance in which he uses E/M code 99328 or 99337.
  • Dr. Nguyen should collaborate with MassHealth to determine the amount to be repaid for improperly documented E/M services.
Agency response & Auditor reply
Agency: "Regarding billing 99328 and 99337, Masshealth only allowed us to bill only these codes."
Auditor: "However, in its response, MassHealth does not support this assertion; it states that it will determine when overpayments occurred and will seek reimbursement."

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