Bigger Than Madoff | Chris Edwards and Tad DeHaven | Cato Institute: Commentary

Bigger Than Madoff | Chris Edwards and Tad DeHaven | Cato Institute: Commentary: "Take Medicare. The Government Accountability Office reports that the program makes about $17 billion in improper payments each year. And that doesn't include problems in the new $60-billion-per-year prescription-drug plan, which is a juicy target for criminals. Harvard University's Malcolm Sparrow, a specialist in health-care fraud, recently testified to Congress that official estimates are 'lacking in rigor,' are 'comfortingly low and quite misleading,' and exclude many kinds of fraud and abuse. He thinks that as much as 20 percent of the federal health-care budget is consumed by fraud, which would be $85 billion a year for Medicare."

'The bottom line is that the enormous size and complexity of federal health programs results in a huge waste of taxpayer funds. The inspector general of the Department of Health and Human Services recently told Congress: "Although it is not possible to measure precisely the extent of fraud in Medicare and Medicaid, everywhere it looks the Office of Inspector General continues to find fraud against these programs."'