The error rate for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) suppliers was 24.2 percent for fiscal year (FY) 2025, according to the latest Medicare Payment Advisory Commission (MedPAC) report to Congress, for an improper payment amount of $28.8 billion. The overall Medicare fee-for-service improper payment rate was 6.6 percent.
Documentation failures accounted for 68 percent of all improper payments across Medicare fee-for-service.
Medicare’s overall improper payment rate has declined from a peak of 12.7 percent in FY 2012, but total expenditures on improper payments have increased to an estimated at $56.7 billion in FY 2025, according to MedPAC.
To read the “Report to the Congress: Medicare and the Health Care Delivery System,” visit the MedPAC website.
