Review of CIGNA Government Services Durable Medical Equipment Regional Carrier Medicare Termination Cost Vouchers for the Period October 1, 2006, Through October 31, 2007

Of the $2.29 million in Durable Medical Equipment Regional Carrier (DMERC) termination costs reviewed, $1.37 million was allowable for Medicare reimbursement under the DMERC contract. The remaining $923,000 was not. Of this $923,000, we set aside $746,000 for Centers for Medicare & Medicaid Services (CMS) adjudication because it was otherwise allowable under CIGNA's Medicare Part B contract. The remaining $177,000 was unallowable for Medicare reimbursement because CIGNA did not have adequate policies and procedures to ensure that these costs were adequately supported and allocated to the DMERC contract in compliance with Federal regulations and CMS guidance.

Dallas L Alford IV, CPA is a licensed Certified Public Accountant in the state of North Carolina and owner of Atlantic Financial Consulting, a consulting firm that provides comprehensive medical billing services, practice management consulting, coding audits, Medicare compliance, Medicare RAC support and other general medical practice consulting services.

To learn more about Atlantic Financial Consulting you may visit their website at

http://atlanticfinancial.us  or contact Dallas L Alford IV, CPA directly at 1 888-428-2555, Ext. 200.