A report issued by the White House Office of Management and Budget found that Medicare, Medicaid and Medicare Advantage programs spent $54 billion in improper payments for healthcare in fiscal year 2009.

The Nov. 17 report concluded that Medicare fee for service improperly spent $24 billion in fiscal 2009, a rate equivalent to 7.8% of total outlays, and Medicaid improperly spent $18 billion, a rate of 9.6%. Medicare Advantage improperly spent $12 billion in 2009, a rate of 15.4% of total outlays on the private plans.

Welcome news from HHS Sec’y Kathleen Sebelius, but necessary. The White House realizes that to make its case for financing a portion of health reform with appropriate cuts in Medicare spending, it has to have data to back up the argument that responsible reaction to Medicare & Medicaid fraud and abuse does not equal rationing of services. If anything, more funding is available for what CMS is supposed to provide — a reliable form of healthcare coverage for the elderly in the spirit of its formation more than 40 years ago. | LINK

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