22-111 - Recommendation 3

Reduce RRMB medical services expenses by implementing a strategy that considers: (1) incentivizing contractors to reduce medical claims by structuring awards in a way that eliminates premiums on healthcare costs; (2) structuring awards in a way that does not commit the BOP to reimburse contractors at Medicare rates when the provider bills are less than the Medicare rate; (3) whether the BOP should have a more central role in negotiating out-of-network costs; (4) how the BOP can minimize invoicing errors and improper use of CPT codes; and (5) cost saving mechanisms for pharmaceutical costs and interest costs resulting from late payments.