Medicare fraud

Have you heard the reports lately of massive fraud against health insurance companies, even fraud collectively equal to $400,000,000 or so? No, I wonder why?

Have you heard of massive fraud against Medicare? Yes?

Now tell me again about the low administrative costs and efficiency of a massive bureaucracy. There are reasons why Medicare is so susceptible to fraud and abuse. They simply do not invest in the claim monitoring, medical necessity review and other measures common in private insurance.

But more important participants in the system, that is patients, providers and administrators don’t care (he said with a measure of tongue in cheek). It’s not like it’s their money after all, there is no profit to worry about, no one is really accountable for not catching the fraud before it continues for years on end.

We’ve heard a great deal about too big to fail and too big to reasonably manage. Here is a perfect example. No massive bureaucracy is efficient and responsive.