To much fanfare, in 2006 Medicare announced that only 7 percent of its payments were a result of fraud. Two years later, The New York Times reported that it was actually 31.5 percent — and that Medicare had aggressively hidden the fraud from outside auditors.
Do you think a privately run insurance company would take three years to notice that one-third of its payouts had been obtained by fraud? But with federal programs, there’s a powerful incentive not to look for fraud. That would merely vindicate critics of big government!
In 2012, Medicare’s crack investigators noticed that more than a billion dollars in home health care payments for 2008 had gone to one single county in Florida — more than all such payments made to the rest of the entire country.
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