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New Medicare Approach Saves $1.9 Billion

May 21, 2018

Pursuit's Take

The Centers for Medicare and Medicaid Services (CMS) required prior authorization as a demonstration in 2012 for certain power mobility devices, such as power wheelchairs, in seven states. This is an approach used by private insurers that requires health providers and suppliers to first demonstrate compliance before items or services are provided. According to GAO’s analyses, expenditures decreased for items and services, and found that estimated savings from all demonstrations through March 2017 could be as high as about $1.1 to $1.9 billion.

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