The New Medicare Scam


As the government works towards a public health insurance program, one more recent event has reignited the question of the efficacy of a Medicare like program. Medicare has been subject to fraud since a long time and the volume of fraud is staggering. Recently a Medicare scam has come to light involving doctors and others in Houston, Boston, Louisiana and New York.

Over 30 Suspects have been arrested and more are being sought for arrest. The scam involved arthritis kits that were never used by several patients. Some of the patients they were prescribed for were dead. Some patients felt the “arthritis kits” were unnecessary and some never received them. Each kit was billed for $3000 to $4000.

More than 200 agents worked to bust the illegal operation which involved money to the tune of $16 million. Incidentally more than $800 billion is spent for Medicaid and Medicare annually. This huge amount of money could surely be used more effectively if there is a plan.

In the backdrop of this huge amount of Medicare/Medicaid spending and this new scam, states are cutting funding for health care services. Recession and the resulting massive budget deficits have taken their toll. Although there are a range of opinions on the subject, my personal take is that you don’t need to spend $10,000 on – say – a gold pen that writes the same as a $100 pen.


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