Monday, November 09, 2009

Spending can be saving

Many want to cut government spending, sometimes even if would save money. The AARP Bulletin has a couple of good articles that highlight this problem.

See "Criminals Bilk Medicare of billions each year" online, "Busting Medicare Fraud" in print, November 2009.

Four years ago Congress turned down a request for $300 million to track down Medicare fraud. An inspector general said every dollar spent doing so would return $17. Hmm, so not spending $300 million cost $4.8 billion (300 x (17-1)). Million wise, billion foolish?

If crooks bilk Medicare, it's bad, but we don't want to spend the money to catch them. If businesses bilk Medicare, it's OK because these businesses contribute to our campaigns.

Medicare is being invoiced for wheel chairs on average four times the cost paid by suppliers. "Congress blocked attempts to impose competitive bidding." Hmm, competition is good for schools but not medical suppliers. See "The Case of the Expensive Wheelchair". Gosh, I thought it was bad that my daughter was charged twice the amount for contact lenses that the ophthalmologist paid. I wasn't supposed to know this, but I saw the invoice as the receptionist took the lenses out of the shipping container and put them in a package for my daughter.