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Brace for fraud: Medicare overspent millions for back braces

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    Report: Agency overpaying, driving up prices

  • Duration 3:40
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-- -- -- let's move on check out how wasteful spending can drive up health care costs a new report.

Says Medicare has been paying more than 900 dollars for that back -- that you see on your screen right there guess how much it really should cost.

100 dollars read on the Internet.

An American taxpayers are footing the bill our next guest says it's needs to stop for the -- he's a former head of the Justice Department's division that investigates health care fraud.

Sorry you had that job he's with assist Washington to share what he thinks needs to be John good morning to you Kirk.

Good morning I -- what a tough job what a tough job for you to have formally had because this is such a rampant in humongous problem.

Why why is Medicare reimbursing 900 dollars for that back -- Well Medicare sets the price so they look at these items and they decide how much that they will reimburse so you have.

A group of people that Medicare setting -- -- -- of 900 dollars and what I would say to people is.

It's like if you walked into a restaurant and then you said it costs ten dollars ordered dinner.

And then they brought -- the bill and the taxpayers showed up and say you know I'm gonna -- ninety for not -- it's just crazy.

So so who is asleep at the at the wheel here because.

I know that it's it's it's it's complicated it's not just Medicare saying hey will will pay 900 dollars is it also the companies that are selling these devices.

Well.

There's a number of things about the report that we're particularly troubling in their questions that aren't answered in this report the first thing that it.

That I noticed in reading this report is there's a 150%.

Increase.

In the use of these back races from 2008.

To 2011.

So either there's there's a rash of -- going around where people need more back races where something's happening.

In the fraud hot spots around the country because people are just.

Getting.

Thousands and thousands of these -- racist so they didn't.

They didn't do what Medicare program and what the Department of Justice need to do.

Which is asked the question should we be paying for these at all in the first place in -- 450%.

Increase is just.

It's inconceivable a.

OK so so maybe it would be fraudulent prescriptions for -- or or or doctors just.

Just handing them out divisions it even if they don't need them I mean I guess there's a lot of unanswered questions.

-- here's what the Medicare spokesperson told us we have consistently advocated the medical suppliers should competitively bid.

For Medicare's business instead of paying arbitrary prices that may be far too high will continue to implement competitive bidding and worked with inspector general.

To prevent Medicare from making overpayments -- how many more times do we have to herein is Kirk.

I mean that sounds like capitalism at its best competition.

But does that really happen with Medicare.

Well the problem is Medicare is too slow so when you talk about competitive bidding what they really want to do.

Is let the marketplace work and -- -- by letting what your time better durable medical equipment companies they're the ones that.

Are able to make this 350%.

For 400% profit on these items.

And rather than did -- and say you know we'll charge the government a 16070.

Dollars.

Medicare Cecil will pay -- 900 and of course they're gonna -- at 900 in -- durable medical equipment companies.

When you look at this report you look at what the government saying.

That it -- it is all ultimately gonna come back to the doctors in the Department of Justice needs to focus in on the doctors that are writing prescriptions for these things.

They need to understand what's happening in the marketplace because.

A 150% increase in these over three years makes no sense -- doctors are the ones that need to be.

Take a hard look at all right interest in -- from somebody needs to be right on the inside -- and -- thanks for your time today.

Thank you have one guy just.

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