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According to a recent Centers for Medicare and Medicaid Services (CMS) report, public healthcare spending in CY 2007 reached $1.06 trillion – this is inclusive of Medicare, Medicaid, and SCHIP funding. CMS predicts that this number will more than double by 2018 – with total public healthcare spending expected to be at $2.23 trillion.
These government programs are rife with fraud, waste, and abuse, often at from the hands of dishonest providers and patients who use various schemes to cost taxpayers money. |
 Jim FrogueProject Director |
As it stands now, these government programs are rife with fraud, waste, and abuse, often at from the hands of dishonest providers and patients who use various schemes to cost taxpayers money.
Though difficult to pinpoint an exact dollar amount associated with this waste, there is a longstanding estimate that 10% of all healthcare dollars come from fraud and abuse, according to a 2009 Government Accountability Office (GAO) report. Applying this percentage to the $1.06 trillion figure, fraud and abuse accounts for upwards of $100 billion. An October 2009 Thomson Reuters report estimated that the U.S. healthcare system wastes between $505 billion and $850 billion every year – 22 percent, or approximately $200 billion, of which is fraudulent Medicare claims, kickbacks, and other scams. Also in October, “60 Minutes” estimated that Medicare fraud costs U.S. taxpayers about $60 billion a year and has become among the most profitable crimes in America today. Clearly, it is difficult to pin down the exact number of dollars wasted each year – a problem in and of itself. Inclusive of waste, in addition to fraud and abuse, we at the Center for Health Transformation believe that this number could easily go above $120 billion per year. This wasted money is simply inexcusable.
