Waste includes any misuse of resources such as the overuse of services, or other practices that, directly or indirectly result in unnecessary costs to the Medicare Program.

• A. False
• B. True
• C. Only direct costs
• D. Only indirect costs

Answer: (B)

Waste happens when resources are misused or overused, leading to unnecessary spending in Medicare. The idea isn’t limited to paying for services that aren’t needed; it also includes other practices that raise costs in any way, whether the extra costs show up directly as payments for unnecessary services or indirectly through added administrative burden, misallocation, or downstream consequences. Because waste can create both direct and indirect costs, the statement is true. Limiting waste to only direct costs or only indirect costs would miss part of what waste encompasses.