Medicaid: A Program Highly Vulnerable to Fraud (Testimony, 02/25/94,
GAO/T-HEHS-94-106).
The Medicaid program cost state and local governments more than $150
billion in 1993 for health services and supplies. It is highly
vulnerable to fraud because of its size, structure, target population,
and coverage. The ensuing drain on program funds is hard to gauge, but
state Medicaid officials believe it may be as high as 10 percent of
program expenditures. Prescription drugs are a very appealing target.
Schemes include pharmacists routinely adding medications to customers'
orders and clinics inappropriately giving Medicaid recipients completed
prescription forms, or scrips, that can be sold on the street to the
highest bidder. Some pills costing 50 cents at the pharmacy have been
resold for as much as $85. Although states have been tackling Medicaid
fraud with some success, the problem persists. Officials in many states
say that most leads go unpursued, cases take too long to resolve, and
penalties are light even for those convicted. Most say that a lack of
resources hinders oversight, investigations, and prosecutions. GAO
suggests that the Health Care Financing Administration take the lead and
develop an overall strategy to guide states in their struggle against
Medicaid fraud.
--------------------------- Indexing Terms -----------------------------
REPORTNUM: T-HEHS-94-106
TITLE: Medicaid: A Program Highly Vulnerable to Fraud
DATE: 02/25/94
SUBJECT: Medicaid programs
Fraud
Program abuses
State-administered programs
Drug trafficking
Internal controls
Interagency relations
Monitoring
Health care costs
IDENTIFIER: Florida
Arizona
Kentucky
Michigan
Minnesota
New York
Oregon
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