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One of the fables about health care costs which have been foisted on the American people is that increasing costs are being driven by “frivolous” medical malpractice suits.  Even though every study which has examined the claim has concluded that it is not true, the belief is widespread and strongly held.  At least in the Medicare arena, we can see cost drivers which put the total cost of all malpractice litigation to shame.

A few days ago, Federal authorities arrested a Texas doctor for Medicare fraud.  According to the allegations, over a five year period, the doctor was able to defraud Medicare of $375 million dollars.  He did this by have assistants get homeless people to sign forms which he used to certify them for home health care.  He then billed Medicare for the non-existent home health care.  He faces a maximum sentence of 100 years in prison but only $18.5 million in fines and forfeitures.

Are you ready for the best part?  In testimony before a House subcommittee, Attorney General Holder told subcommittee members that in the last fiscal year, the Justice Department recovered nearly $4.1 billion in funds “stolen or taken improperly from federal healthcare programs”.  That is $4.1 billion with a “B”.  And you know that is just the tip of the iceberg.  Instead of blaming people injured by medical negligence for having the temerity to ask for compensation from those who injured them, why don’t we get serious about stopping those who game the system and who are stealing huge sums from us?

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