AHIP Fraud, Waste, and Abuse (FWA) 2025 – 400 Free Practice Questions to Pass the Exam

An example of waste in relation to Medicare resources is the misuse of resources leading to unnecessary costs. This concept refers to situations where healthcare services are provided that are not needed or are excessive compared to patients' actual requirements. Waste arises from inefficiencies and systemic issues within healthcare delivery, which can result in monetary costs that do not contribute to patient health outcomes.

For instance, if healthcare providers order unnecessary tests or procedures that do not benefit the patient, those actions illustrate wasteful spending of Medicare funds. Such misuse does not result in value-added care, even though the services may technically be rendered correctly.

Other options reflect concepts that do not align with the definition of waste as it pertains to Medicare. Underutilization of services, for example, refers to not utilizing available resources efficiently or ensuring that patients do not receive necessary care rather than misusing resources. Providing only necessary services to patients and engaging in accurate billing practices are indicative of effective use of Medicare resources and compliance with regulations, rather than waste.