Report: Medicaid fraud is running rampant

Share this article:

Fraud in the Medicaid program is rampant and only eight federal employees monitor states' efforts to fight it, according to a Government Accountability Office report released Wednesday.

Medicaid reimbursements are expected to hit $300 billion this year, with more than half of it in federal money.

While the GAO report said it could not specify how much Medicaid fraud costs the government, state and federal prosecutors have uncovered various schemes defrauding the system.

Of particular concern is Medicaid fraud involving drug-pricing practices, according to Sen. Charles E. Grassley (R-IA), who requested the study.

The Centers for Medicare and Medicaid Services has been slowly reviewing state programs since 2000 but will not finish reviewing all 50 states until late 2006, the report said. 

CMS Administrator Mark McClellan said his agency is increasing its financial management staff to review Medicaid spending. The agency budgeted $26,000 in fiscal 2004 for compliance reviews and other oversight of state fraud control units.

Share this article:

More in News

Double homicide at Houston nursing home; victims' roommate arrested

Double homicide at Houston nursing home; victims' roommate ...

A double murder occurred late Tuesday night in a Houston nursing home room shared by four men, according to local authorities. Police arrested Guillermo Correa on suspicion of beating two ...

$2 million HIPAA settlement highlights mobile device risks facing healthcare providers

Laptops and other mobile devices containing personal health information have been stolen from long-term care ombudsman programs and other healthcare organizations, including from Concentra Health Services and QCA Health Plan Inc. Now, Concentra and QCA have agreed to legal settlements totaling nearly $2 million, federal ...

Long-term care nurses often 'scramble' to get family members' blessing for palliative ...

Nursing home residents might not transition to full palliative care until they are very near death, at which point nurses and family members act in a state of crisis, suggests recently published research out of Canada.