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OIG finds $72 million in MA and Part D payments tied to excluded or felony-convicted providers

OIG identifies preclusion-process vulnerabilities behind $72 million in plan payments associated with revoked NPIs. Its data brief distinguishes timing and ownership issues from a dispensing-pharmacy regulatory gap and makes no specific CMS recommendations.

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What happened

The report was issued September 28 and posted October 1. OIG examined 1,017 NPIs associated with providers revoked from Medicare Parts A and B who were absent from the Preclusion List during 2022 and 2023. It identified $72 million in Part C and Part D payments to 249 of those NPIs during 2022 through 2024. The different analysis and payment periods matter: the reported payment total is not limited to the two years used to select the NPI population.

OIG attributes the vulnerabilities to timing problems and errors when providers were added to or removed from the list, and to omission of some organizations whose owners were excluded or had felony convictions. It also says current regulations do not subject pharmacies that only fill prescriptions, without prescribing Part D drugs, to preclusion. The brief offers information for possible future regulatory or guidance solutions and contains no specific CMS recommendations. It does not announce that revocation and preclusion are interchangeable or impose a new blanket recoupment instruction on plans.

Scope and timing

Authority status
Announced
Applicability
Operationally relevant
Audience
Health systems, Provider networks
Jurisdiction
Federal
Affected functions
Provider Enrollment, Managed Care, Compliance, Revenue Cycle
Responsible owner
Provider Enrollment

Why it matters

Enrollment revocation, exclusion and preclusion are distinct. The summary also identifies a regulatory gap for dispensing-only pharmacies; it does not order blanket recovery of every payment.

Implementation playbook

  1. Reconcile provider-status sources and investigate discrepancies. Internal target. Provider Enrollment · Due 2026-10-18
  2. Review affected payments with counsel, without assuming a blanket repayment order. Internal target. Compliance · Due 2026-10-18

Sources

Complete edition and supplemental material

This finding in the complete approved report →

Regulatory horizons, CIA trends and implementation trackers remain in the full report.

Read the entire Medicare & Medicaid report →

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