What does the term 'upcoding' refer to in Medicare fraud?

The term 'upcoding' specifically refers to the practice of increasing the service level codes on claims submitted to Medicare or other insurers to receive a higher reimbursement than what is warranted based on the services actually performed. This fraudulent practice can occur when a provider assigns a billing code that reflects a more complex or higher-paying service than what was actually delivered to the patient. For instance, a routine visit that is coded as a comprehensive visit would result in a higher payment, which constitutes fraud.

Understanding this definition is crucial, as it highlights the ethical obligation of healthcare providers to correctly and accurately report the services they deliver. This not only ensures compliance with regulations but also helps maintain the integrity of the healthcare reimbursement system.