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Office of Medicaid (MassHealth) - Review of Vision Care Claims Paid to Dr. Wensheng Yao

December 22, 2017 · Office of Medicaid (MassHealth) · Read the full official report (PDF) ↗ · official site ↗

Published December 22, 2017 Audit covers July 1, 2011 – June 30, 2016 Under Suzanne M. Bump · 2011–2023

In plain English
Auditors found that Dr. Wensheng Yao improperly billed MassHealth for some vision care services, including services done by other optometrists, claims with wrong service dates, and questionable eyeglass dispensing charges.
source
“Below is a summary of our findings and recommendations, with links to each page listed.”
Read the plain-English breakdown
What is this?

This is a Massachusetts State Auditor performance audit of MassHealth vision care claims paid to Dr. Wensheng Yao for services from July 1, 2011 through June 30, 2016.

“OSA has conducted an audit of vision care claims paid to Dr. Wensheng Yao for the period July 1, 2011 through June 30, 2016.”
Why was it audited?

The audit checked whether the MassHealth-paid vision services were needed, documented, and allowed under MassHealth rules.

“The purpose of this audit was to determine whether vision care services provided to MassHealth members were medically necessary, properly supported by documentation, and allowable in accordance with MassHealth regulations.”
Why it matters

MassHealth is a large public program serving about 1.9 million people, and improper payments can affect public trust and state spending.

“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 auditor concluded that Dr. Yao did not properly bill MassHealth in all cases and identified hundreds of thousands of dollars in overpayments or questionable charges.

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

MassHealth said it would seek repayment, require a corrective action plan, train the provider on billing rules, monitor compliance, and use sanctions if needed.

“MassHealth will initiate recovery of the overpayment from Dr. Yao after the final report has been issued.”
Why it's significant

The report found at least $396,962 in overpayments for services billed under Dr. Yao’s provider number but performed by other optometrists, plus as much as $218,784 in questionable eyeglass dispensing charges.

“This resulted in at least $396,962 of overpayments during the audit period.”
Jargon, unpacked

“Dispensing services” means helping someone choose frames, measuring for lenses and frames, fitting the finished glasses, checking that the person can see clearly, making adjustments, and giving the glasses to the person.

“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.”
Identified in this audit - source-verified
$396,962

3 figure(s) pending source verification - not shown

What the Auditor checked

What the Auditor found

Dr. Yao billed MassHealth under his own provider number for services performed by other optometrists.
vendor oversightinternal controls

Why it matters: MassHealth paid at least $396,962 in overpayments, and some services were performed by optometrists before they were enrolled as MassHealth providers.

Standard: 246 CMR 3.07(1), 130 CMR 402.404, and 130 CMR 450.301 ( Section 3.07(1) of Title 246 of the Code of Massachusetts Regulations; 130 CMR 402.404; 130 CMR 450.301 )

3 recommendations
  • Dr. Yao should collaborate with MassHealth to establish a plan to repay the $396,962 in overpayments he received from improper vision care billings.
  • Dr. Yao should bill MassHealth only for services he personally provides, using his billing provider identification number.
  • Dr. Yao should periodically review billing requirements in MassHealth regulations and updates and follow them when billing for services to MassHealth members.
Agency response & Auditor reply
Agency: "Community Optics never had ill intent or any other intention to improperly bill MassHealth."
Auditor: "Therefore, MassHealth regulations allow Dr. Yao to bill using his provider identification number only for vision care services he personally provides, not for those provided by any other licensed optometrist with whom he associates."
Dr. Yao billed some claims with incorrect dates of service.
recordkeeping/documentationinternal controls

Why it matters: Members could be incorrectly denied eligible follow-up vision care because MassHealth limits how often members may receive certain services.

Standard: 130 CMR 450.231(B) ( 130 CMR 450.231(B) )

1 recommendation
  • Dr. Yao should submit claims to MassHealth using the actual dates on which the vision care services are provided to members.
Agency response & Auditor reply
Agency: "Community Optics is implementing procedural changes to ensure consistency in identification of the date of service."
Dr. Yao billed MassHealth for eyeglass dispensing services before eyeglasses were dispensed or when they were never ordered or picked up.
vendor oversightinternal controls

Why it matters: Dr. Yao was paid for dispensing services that had not been performed.

Standard: 130 CMR 402.416 and MassHealth Transmittal Letter VIS-37 ( 130 CMR 402.416; MassHealth Transmittal Letter VIS-37 )

2 recommendations
  • Dr. Yao should collaborate with MassHealth to determine the amount of dispensing services to be repaid, which should be, at a minimum, $28,744.
  • Dr. Yao should only submit claims for dispensing services for a MassHealth member when he fits the new eyeglasses to that member.
Agency response & Auditor reply
Agency: "Community Optics operated with the understanding that dispensing services could be billed at any point in time from performing the initial measurement and fitting to the date on which a patient picked up the eyeglasses."
Auditor: "However, as noted above, 130 CMR 402.416 allows for payment for dispensing services only after the dispensing process is finished."

Verified dollar findings

Improper payments identified $396,962

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

$396,962 - overpayments

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