Senator Rick Scott | Senator Rick Scott Website
Senator Rick Scott | Senator Rick Scott Website
WASHINGTON, D.C.— In a joint effort, Senators Rick Scott, Mike Braun, and J.D. Vance have called for a comprehensive audit of Medicare following reports of significant fraud within the system. The senators highlighted the urgency of the situation, emphasizing the need for enhanced oversight and preventive measures.
According to the senators, "In 2022, the Government Accountability Office (GAO) estimated improper payments cost Medicare $47 billion, while other estimates put Medicare fraud at over $60 billion annually." They expressed concern over the low recovery rate, stating, "In fiscal year 2022, only $1.7 billion was reclaimed from Medicare fraud, representing a mere 2.8 percent recovery rate."
The senators underscored the severe implications of Medicare fraud, stating, “This fraud poses a substantial financial threat to older Americans, undermines our healthcare system's integrity, and contributes to the nation's $34 trillion deficit." They noted the disparity between private sector standards, adding, "In the private sector even a minor level of fraud would lead to an immediate audit of one’s finances."
Calling for action, they requested that the Government Accountability Office (GAO) audit the Centers for Medicare and Medicaid Services’ (CMS) internal oversight reforms to enhance fraud prevention and minimize financial losses.
The senators also referenced recent investigative reports by The New York Times and The Washington Post, highlighting an alleged Medicare fraud scheme uncovered by the National Association of Accountable Care Organizations (NAACOS). This scheme involved a significant increase in taxpayer spending, amounting to an estimated $2.7 billion.
Highlighting the evolving nature of fraud schemes targeting Medicare, the senators pointed out that the system has become a target for sophisticated tactics such as online phishing, data breaches, and international fraud rings. They noted a case in 2023 where COVID-19 test kit fraud led to losses of over $200 million from the Medicare Trust Fund.
Quoting an individual involved in Medicare theft, the senators emphasized the ease with which fraudulent activities are carried out, as the individual stated, "It’s just so easy. It’s unbelievable."
The call for a full audit of Medicare comes as a response to the pressing need to address fraudulent activities within the system and safeguard taxpayer funds.