There are many factors that contribute to why Medicare & Medicaid fraud is becoming out of control in America. Two serious contributors are overpriced prescriptions for medications, devices and treatments in addition to overspending by largely unregulated hospitals. Billions of Americans’ tax dollars are not going to where they are intended.
Doctors have many incentives for prescribing the most expensive drugs and medical devices mainly including rewards from drug companies. This type of fraud is estimated to account for about 15% of Medicare & Medicaid over-billings. It is difficult to restrict the ability of the drug companies to manipulate doctors because according to the study, the corporations have too much influence in the US Government.
Additionally, “boutique hospitals,” those owned by investor groups and not-for-profit hospitals are also cited as a large source of Medicare & Medicaid fraud. According to the study, these hospitals are less regulated by the government and can, as a result, over-bill the federal government.
Medicare & Medicaid fraud was also shown to be extensive in nursing homes, rehab centers, and long term care facilities. Click here to learn more.
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