Disclaimer
The views expressed by me on this blog are mine alone at the time of posting and do not necessarily reflect the views of any organization with which I am associated.
Thursday, March 01, 2012
Medicare Fraud
This $375 million scam should be more surprising than it is. In the typical market, the customer doesn't get overcharged the first time because he knows the price of the transaction before he enters into it. If he gets overcharged once, it doesn't happen a second time, because he pays the cost of the service and can go elsewhere for a cheaper price. As the article linked above indicates, Medicare is left to "pay and
chase." What a shame -- some of Medicare's most effective auditors are
the customers themselves. A reasonable co-payment might have prevented
this scam from getting so large, as the customers would have refused to
go along with it or the more conspicuous bribe that would have been
required.
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