Monday, November 30, 2009

MEDICARE PLAGUED BY WASTE, FRAUD, ABUSE

Medicare does not regularly review bills for accuracy and to prevent fraud

Cost savings through reduction of waste, fraud, and abuse in the Medicare system being offered as a key funding source for health care reform currently under consideration on Capitol Hill. Ironically, eliminating this corruption would require Medicare to adopt private-sector reforms, says the Heartland Institute.

  • Fraud is rampant and unchecked throughout the Medicare system, while private carriers do a much better job of preventing it.
  • Private carriers spend a lot on efforts [to prevent fraud], raising their administrative expenses in the process.

Many Medicare abuses happen in the market for durable medical equipment (DME), such as wheelchairs and oxygen equipment. A draft OIG audit released in August 2008 flagged almost a third of the 2006 DME claims sampled as having been improperly reimbursed.

According to a July report by the Government Accountability Office:

  • Medicare paid as much as $92 million since 2000 for equipment purportedly prescribed by doctors who were dead.
  • Claimants have submitted counterfeit documents, forged doctors' signatures, and filed bills on behalf of patients who were dead or had never been seen by the prescribing physician.

[The obviouse thing to do is move away from our private system and reward government with more of the business.

Its got nothing to do with health 'care'.]

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image toon - 1st hcare mny = Waste Fraud Abuse laughing at Oby's plans

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