Provider Manual


The Department of Human Services (DHS) has mandated minimum requirements for Medical Assistance to ensure that Beacon and Beacon providers are preventing and detecting potential fraud, waste and abuse. 

  • Fraud: Any type of intentional deception or misrepresentation made with the knowledge that the deception could result in some unauthorized benefit to the person committing it – or any other person. The attempt itself is fraud, regardless of whether or not it is successful
  • Waste: Includes overusing services, or other practices that, directly or indirectly, result in unnecessary costs. Waste is generally not considered to be driven by intentional actions, but rather occurs when resources are misused.
  • Abuse: When health care providers or suppliers do not follow good medical practices resulting in unnecessary or excessive costs, incorrect payment, misuse of codes, or services that are not medically necessary.

Some common examples of fraud and abuse are:

  • Billing or charging Medical Assistance recipients for covered services
  • Billing more than once for the same service
  • Dispensing generic drugs and billing for brand name drugs
  • Incomplete or false records
  • Performing inappropriate or unnecessary services

In the Pennsylvania HealthChoices Behavioral Health Program Standards and Requirements, Appendix F obliges Beacon and Beacon providers to comply with Federal and State regulations and implement compliance programs and efforts that prevent and detect fraud, waste, and abuse. Subsequently, Beacon has implemented a compliance and program integrity plan with policies and procedures, trainings, and reporting responsibilities. The complete documentation for Beacon requirements are outlined on the Beacon Fraud and Abuse webpage available at the following address:

Investigative Process

The Special Investigations Unit (“SIU”) investigates suspected incidents of FWA for all types of services. Beacon may take corrective action with a Provider or Facility, which may include, but is not limited to:

  • Written warning and/or education: Beacon sends letters to the Provider or Facility advising the Provider or Facility of the issues and the need for improvement. Letters may include education or requests for repayment, or may advise of further action.
  • Medical record review: Beacon reviews medical records to investigate allegations or validate the appropriateness of Claims submissions.
  • Edits: A certified professional coder or investigator evaluates Claims and places payment or system edits in Beacon’s Claims processing system. This type of review prevents automatic Claims payments in specific situations.
  • Recoveries: Beacon recovers overpayments directly from the Provider or Facility. Failure of the Provider or Facility to return the overpayment may result in reduced payment for future Claims, termination from our network, or legal action.

Policies and Procedures

Beacon has established policies and procedures to meet the DHS requirements specific to the prevention and detection of fraud, waste, and abuse (FWA). All Beacon providers are responsible to meet the requirements on the Beacon Fraud and Abuse webpage. Beacon will announce updates to or revisions to the Beacon Fraud and Abuse webpage in the Compliance Alert Section of ValueAdded, Beacon’s monthly provider newsletter.

Mandatory Trainings

All providers are required to have at least one representative attend an Annual Fraud and Abuse Training offered by Beacon. The provider or provider representative is responsible for reporting all information at the training to the provider and/or the entire staff of the provider agency. If a provider is unable to attend the Fraud and Abuse Training, the provider is responsible to independently review the mandatory training and document when the training is completed within their records. Check the Provider Trainings webpage for Fraud and Abuse Training dates.

All new providers are responsible to complete and review the documentation and previous trainings available on the Beacon Fraud and Abuse webpage. All new providers must attend one of the New Provider Fraud and Abuse Training Webinars offered each quarter. Check the Provider Trainings webpage for available dates.


All providers are required to report suspect fraud and abuse. If someone suspects any Member or Provider (a person who receives benefits) has committed fraud, waste or abuse, they have the right to report it. No individual who reports violations or suspected fraud and abuse will be retaliated against for doing so. The name of the person reporting the incident and his or her callback number will be kept in strict confidence by investigators.

Report concerns by:

  • Visiting At the top of the page click “Report it” and complete the “Report Waste, Fraud and Abuse” form. For the “Who is the insurance company?” dropdown, select “Beacon Health Options.”
  • Calling Provider Services

Any incident of fraud, waste or abuse may be reported to Beacon anonymously; however, Beacon’s ability to investigate an anonymously reported matter may be limited if Beacon doesn’t have enough information.  Beacon encourages Providers and Facilities to give as much information as possible. Beacon appreciates referrals for suspected fraud, but be advised that Beacon does not routinely update individuals who make referrals as it may potentially compromise an investigation. Learn more at

Additionally, DHS has established a hotline to report suspected fraud and abuse committed by any entity providing services to Medical Assistance recipients. The hotline number is 1-866-DPW-TIPS (1-866-379-8477) and operates between the hours of 8:30 AM and 3:30 PM, Monday through Friday. Voice mail is available at all other times. Callers may remain anonymous and may call after hours and leave a voice mail if they prefer.