The HHS Office of Inspector General (OIG) has issued two reports on PSCs, which contract with CMS to perform selected Medicare program integrity tasks. First, the OIG reports that PSCs referred $835 million in overpayments for collection in 2007, but 18 PSCs were responsible for 62% of these referrals. In addition, overpayment amounts referred by PSCs for collection were not always related to the size of PSCs’ oversight responsibility. The OIG also found that there were greater overpayment amounts for Part B than Part A, even though Part A represents the greater amount of PSCs’ oversight responsibility. In a second report, the OIG determined that overpayments referred for collection by PSCs in 2007 did not result in significant recoveries to the Medicare program. In fact, only 7% ($55 million of $835 million) of identified overpayments had been collected by claims processors as of June 2008. In response to the OIG’s findings, CMS noted that it is in the process of transitioning PSCs to seven Zone Program Integrity Contractors, and this new contracting strategy should address the OIG’s concerns.