CMS got a rap on the knuckles in a recent OIG report, which said the agency is not evaluating the success of corrective actions it has taken to close Medicare vulnerabilities to improper payments. The report said that "if CMS does not evaluate corrective actions, it cannot determine whether its corrective actions are effectively addressing vulnerabilities, which may result in continued high amounts of improper payments."

OIG said that CMS identified a total of 46 Medicare vulnerabilities that led to improper payments in fiscal years 2010 and 2011. As of June 2012, CMS had not evaluated the effectiveness of corrective actions taken for 28 of the vulnerabilities, OIG said. The 28 vulnerabilities resulted in $1.86 billion in improper payments. OIG also said CMS had not take action on six potential fraud referrals submitted by Recovery Audit Contractors.

The report recommended that CMS evaluate the success of corrective actions taken, as well as implement any corrective actions that are still pending. Additionally, CMS should review the six fraud referrals and take any necessary actions.