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Klobuchar Pushes for Legislation to Combat Medicare Fraud

Says uniform Medicare payments are needed to stop fraud

October 28, 2009

Washington, D.C. - U.S. Senator Amy Klobuchar, a member of the Senate Judiciary Committee and the author of cost-reducing Medicare reform legislation, today pushed for legislation to help stop fraud in the U.S. health care system.

At a Senate Judiciary Committee hearing to explore ways to prevent health care fraud, Klobuchar highlighted the vulnerabilities of the current Medicare/Medicaid payment system and called for the Senate to adopt the IMPROVE Act, a payment reform bill that would require direct depositing of all Medicare and Medicaid payments made to providers. Regulations currently call for direct deposits, but are not uniformly enforced. "As a former prosecutor, I saw firsthand how crooks cheated the health care system and stole money that should have been used to provide care for those who need it most - our seniors and most vulnerable citizens," said Klobuchar. "This legislation can save taxpayer dollars as well as the valuable time and resources of our law enforcement officials."

The National Health Care Anti-Fraud Association estimates that more than $60 billion in health care costs is lost to fraud each year. The IMPROVE Act has been endorsed by the AARP, the National Association of District Attorneys, the American Bankers Association, the Minnesota Bankers Association, the Credit Union National Association and the Minnesota Credit Union Network. The National Association of District Attorneys called the bill, "...a commonsense, simple cost-saving fix that introduces a simple but key anti-fraud barrier in our health care system."

The Office of the Inspector General for the Department of Health and Human Services said that this type of legislation will allow the government to trace Medicare payments efficiently. Currently, lax verification and identification requirements at check cashing stores makes it easy for Medicare and Medicaid scammers to commit fraud and disappear without a trace - even overseas. The IMPROVE Act closes this check-cashing laundering loophole. The legislation is sponsored in the House by Rep. Patrick Murphy (D-PA) and Mike Arcuri (D-NY). Senator Klobuchar is also a co-sponsor of the STOP Act, which would provide the Health and Human Services Department and the Social Security Administration with the resources necessary to help prevent Social Security Identity theft and Medicare fraud and abuse.

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