Hospital Lobby Continues Effort to Gut Anti-Fraud Provisions

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Medicare fraud is widespread. One of the chief beneficiaries of this fraud is the hospital industry. That is why the hospital lobbyists are working to kill the Medicare fraud identification effort, the Recovery Audit Contractor Program. It’s worth $50 billion to the American Hospital Association.

That’s $50 billion of your tax dollars which goes to hospital bottom lines.

(From Red State)

RACs was designed to identify and correct Medicare improper payments and has become the bane of the existence of the hospital lobby, the chief beneficiary of improper payments from Medicare. Unlike other anti-waste programs, RACs has been so effective it has become a target of lobbyists representing the hospital industry. Since its inception, the RACs program returned an incredible $8.9 billion to the Medicare Trust Fund and in the past year, the program identified and returned nearly $4 billions alone.

Rather than celebrate and continue to grow a program successfully reducing waste, fraud and abuse in government, members of both parties have sought to scuttle the program. The reason? Hospitals are the chief beneficiaries of an estimated $50 billion a year in overpayments and they don’t want to pay it back.