The Case for Program Integrity in Medicaid Managed Care | Part One: The Current Landscape and Industry Issues
Myers & Stauffer is pleased to present a multi-part blog series, brought to you by our Benefit/Program Integrity Team. In this series, we will take an intensive look at the various components of managed care and program integrity, how they fit together, the salient aspects of each, and why it all matters. In this first post, we provide insight, driven by industry developments and current events, into why these issues are so important – for those charged with oversight of managed care programs and for their beneficiaries and the people they serve.
Key Takeaways
Cases of healthcare fraud, waste, and abuse (FWA) within Medicaid managed care programs are causing financial strain and impacting vulnerable populations across the United States. As the Department of Justice reports record-breaking efforts to combat healthcare fraud, program integrity (PI) remains a vital component in protecting Medicaid beneficiaries and ensuring the effective use of taxpayer dollars.
Fraud, Waste, and Abuse in the News
Cases of health care fraud, waste, and abuse (FWA) are making headlines…and with good reason. In June 2025, the Department of Justice reported:
“The Justice Department today announced the results of its 2025 National Health Care Fraud Takedown, which resulted in criminal charges against 324 defendants, including 96 doctors, nurse practitioners, pharmacists, and other licensed medical professionals, in 50 federal districts and 12 State Attorneys General’s [sic] Offices across the United States, for their alleged participation in various health care fraud schemes involving over $14.6 billion in intended loss. The Takedown involved federal and state law enforcement agencies across the country and represents an unprecedented effort to combat health care fraud schemes that exploit patients and taxpayers.
“Demonstrating the significant return on investment that results from health care fraud enforcement efforts, the government seized over $245 million in cash, luxury vehicles, cryptocurrency, and other assets as part of the coordinated enforcement efforts. As part of the whole-of-government approach to combating health care fraud announced today, the Centers for Medicare and Medicaid Services (CMS) also announced that it successfully prevented over $4 billion from being paid in response to false and fraudulent claims and that it suspended or revoked the billing privileges of 205 providers in the months leading up to the Takedown. Civil charges against 20 defendants for $14.2 million in alleged fraud, as well as civil settlements with 106 defendants totaling $34.3 million, were also announced as part of the Takedown.”
The scope and significance of these cases, and their far-reaching effects around the country, demand attention. Similarly, other reports, from a range of outlets, have exposed high-profile, high-dollar accounts of FWA because of managed care organizations (MCOs) failing to maintain proper PI oversight of their providers, including delegates such as pharmacy benefit managers (PBMs). In fact, look for a Case Study (related to our actual engagements) in an upcoming installment entitled Part Four – Managed Care and Program Integrity Oversight of Subcontractors that details the importance of oversight of delegated entities.
In the interim, we invite you to join us for each installment along the way to learn about how FWA show up in managed care (and its different dimensions), what the consequences can be, and how those charged with PI oversight can address these issues and protect the accuracy and efficiency of Medicaid payments, processes, and systems, all for the ultimate goal of serving the nation’s most fragile and needy individuals.
Related Posts in Our Series
Explore the full scope of Medicaid managed care and program integrity through our comprehensive series:
Final Part Twelve: Series Retrospective and Look Ahead
Part One: The Current Landscape and Industry Issues
Part Three: Does Your MCO Contract Encourage Program Integrity Efforts?
Supplementary Insight – OIG Identified Concerns with Managed Care Plans Fraud Referral Process
Part Five: Encounter Data and Problematic Data
Part Six: Encounter Data Recommendations
Part Seven: Encounter Data Case Study
Part Eight: Managed Care and Program Integrity Oversight of Subcontractors
Part Nine: Managed Care and Program Integrity Oversight of Subcontractors Case Study
Part Ten: Prior Authorization and Claims Denials – Influential Factors
Related Insights
2025 National Health Care Fraud Takedown
In June 2025, Justice Department announced the results of its 2025 National Health Care Fraud Takedown, which resulted in criminal charges against 324 defendants, including 96 doctors, nurse practitioners, pharmacists, and other licensed medical professionals, in 50 federal districts and 12 State Attorneys General’s Offices across the United States, for their alleged participation in various health care fraud schemes involving over $14.6 billion in intended loss.
Health Care Fraud Takedown
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Ryan Farrell, CFE
Principal
Email: rfarrell@mslc.com
Phone Number: 512-342-0800
Emily Wale, CPA, CFE
Member
Email: ewale@mslc.com
Phone Number: 317-815-5466
