• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Who Will Keep Government-Run Insurance Honest?

    President Obama again trumpeted his claim last night, that we need government-run health insurance “to help keep the insurance companies honest.” He should check with his own Justice Department about dishonesty in government-run health plans.

    The state and city governments in New York this week agreed to pay a $540 million fine, $440 million from the state and $100 million from the city, to settle accusations that they defrauded Medicaid. It’s a record-high Medicaid recovery from a public entity.

    According to the Department of Justice press release, the governments “knowingly submitted” fraudulent claims.

    The case had been under seal for ten years, according to media reports. But it wasn’t government that uncovered the mess. A speech therapist, Hedy M. Cirrincione, blew the whistle ten years ago and started private whistleblower lawsuits which the government eventually took over. A federal audit questioned over $1-billion in claims from the New York governments.

    The whistle-blower is to receive $10-million of the recovery for her efforts.

    As Reuters reports:

    the claims involved reimbursement for school-based health care services, primarily speech therapy and transportation, provided to Medicaid-eligible children from 1990 to 2001.

    The settlement represented a record federal recovery by the department for the Medicaid program, under which the federal government shares the cost of medical services for the poor and disabled with the states.

    The programs at issue were developed jointly by New York’s education and health departments to assist local school districts, counties, and other schools in obtaining Medicaid reimbursement for covered diagnostic and health support services provided to students with disabilities.

    The settlement resolved allegations the state passed on claims to the federal government for services it knew were not covered or properly documented, the department said.

    Posted in Obamacare [slideshow_deploy]

    3 Responses to Who Will Keep Government-Run Insurance Honest?

    1. ranorth, Illinois says:

      Let Congress pass this health bill for themselves and see how it works before they slam it on the rest of us! Under Obama's plan, most of them would be left to die anyhow. That may not be a bad thing!

    2. Pingback: » Financial News Update - 07/23/09 NoisyRoom.net: Where liberty dwells, there is my country…

    3. Pingback: Who Will Keep Government-Run Insurance Honest? » The Foundry | Money Blog : 10 Dollars : Money Articles.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×