STEARNS ASKS HHS SECRETARY AND GAO COMPTROLLER GENERAL TO PROVIDE AN ESTIMATE ON COST OF MEDICARE FRAUD
 

Washington, Mar 14 -

“Earlier this month, I held a hearing examining waste, fraud, and abuse in the Medicare and Medicaid programs,” stated Rep. Cliff Stearns (R-FL), Chairman of the Oversight and Investigations Subcommittee for the Energy and Commerce Committee.  “Although some estimates for the cost of fraud in just Medicare ran from $60 billion to $90 billion a year, I wanted to hear the estimate from the witness from the Center for Medicare and Medicaid Services (CMS).  Mr. John Spiegel, Director of Medicare Program Integrity for CMS, could offer no figure.  It is very unsettling that the Administration is unable to estimate the amount of fraud in a $600-billion program.  How can we take effective steps in eliminating fraud when we don’t know the extent of the problem?”

“Equally troubling was the lack of basic steps in an attempt to prevent fraud and abuse,” added Stearns.  Stearns has sent letters* to Health and Human Services (HHS) Secretary Sebelius and the Comptroller General of the U.S. Government Accountability Office (GAO), Gene Dodaro, seeking this simple, but vital, estimate. 

Stearns requested that HHS and GAO provide an estimate of the dollar amount lost to fraud each year in Medicare.  He also asked if HHS or GAO has ever attempted an internal audit of the Medicare program and any results if so.Finally, he asked if HHS has contracted with an outside entity to provide an estimate on Medicare fraud or if it is considering such a contract.

* Attached are copies of the letter to HHS and to GAO