While I’ve been ragging on Florida, the NY Times has noted something we’ve all known for a while — New York’s Medicaid fraud may reach into the billions. Given that New York’s Medicaid program spends more in total and way more per capita than California’s, the tricks going on within the system there have been going on a long time.
The Industry Veteran comments:
Of the $44.5 billion annually spent on the program, sources tell the Times that as much as 10% is diverted to fraud and abuse. I quote here what I consider to be the article’s key paragraph:
"The lax regulation of the program did not come about by chance. Doctors, hospitals, health care unions and drug companies have long resisted attempts to increase the policing of Medicaid. The pharmaceutical industry, which has spent millions of dollars annually on political contributions and lobbying in Albany, has defeated several attempts to limit the drugs covered by Medicaid; other states have saved hundreds of millions of dollars annually with such restrictions."
I can’t say that this is exactly surprising news and I eagerly look forward to indictments of numerous physicians, hospital administrators and pharmaceutical company vice-presidents. I have written before in THCB my opinion that a large percentage of physicians are amoral, sociopathic mafiosi who lack even the charm of a Tony Soprano. When these “made men” (and women) join forces with the truly narcissistic psychopaths who run our Big Pharma companies, corruption on a scale of the Tweed Ring remains inevitable. I can see why Frank Rich and others refer to the U.S. under George Bush as a new Gilded Age.