This is a clear reason why government shouldn't get responsibility for managing any program, since they do not institute financial controls to prevent situations like Federal Medicaid and State Medi-Cal Fraud. The NY Times article below describes how homeless people with Medicaid and California Medi-Cal health insurance cards were recruited daily and taken to one of three provate hospitals for bogus or non-existent medical problems so the hospitals could use their Medicaid card to file insurance claims. When I lived in California, it was common for rolling xray labs to arrive at business locations and xray people to generate false reasons to provide overpriced medical care to file against employer insurance. As a corporate audit manager, we tried to get our insurance company, MetLife, to provide a list of the known scammers to warn employees not to use them. But, the lawyers lobby and their friendly Democrat officials had passed laws that would allow the scammers to file liability lawsuits against any employer who tried to restrict which medical providers were used by their employers. So, we couldn't do it, but the insurance company stopped the claims during their review process. However, many firms, including local government agencies and school... Read more →
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