What Is the Real Cost of Medicare Fraud?
One of the key arguments in Obama's healthcare reform proposal is that the government can lower healthcare costs by 1.5% a year, by negotiating lower prices and reducing other inefficiencies. The annual healthcare bill is $2 trillion, so this would save $30 billion a year.
A recent "60 Minutes" show, repeated by many sources, says Medicare fraud costs $60 billion a year, which would negate the savings in the Obama plan. However, my About.com colleague and professional journalist Pierre Tristam reports the true cost is closer to $19 billion at most. My own estimates put fraud costs between $14-$30 billion.
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What It Means to You
Why does this overstatement of Medicare fraud matter? Without healthcare reform, Medicare and Medicaid costs will rise from 6% (current) to 15% of GDP by 2040. Obama's healthcare reform proposal will lower costs by $2,600 per family in 2020 and $10,000 by 2030. It will reduce the deficit by 3% of GDP by by 2020, which will lower unemployment .25% per year, creating 500,000 jobs. It will also reduce visits to the emergency room by the uninsured, saving $100 billion, or .6% of GDP, per year.
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Comments
Reform yes – this bill – NO WAY. See WSJ article out today titled “Worst Bill Ever” – Epic new spending and taxes, pricier insurance, rationed care, dishonest accounting. This is going to individually cost citizens/taxpayers (working professionals) thousands and not reform healthcare the way it really needs to.
You obviously don’t like the House Bill. Do you think the Obama Proposal or the Senate Bil is better? Or would you propose something else entirely?
Kimberly