Health Care Fraud Costs U.S. Taxpayers at Least $60 Billion Annually

According to the Miami Herald, health care fraud costs U.S. taxpayers at least $60 billion annually (Clark/Weaver, Miami Herald, 5/20). In the past, the largest sums recovered by the federal government have resulted from DOJ interventions in lawsuits against pharmaceutical companies filed under the False Claims Act. According to attorneys involved with the cases, such settlements are likely to reach record highs in FY 2009 (Washington Post, 5/21). In southern Florida, a task force created in 2007 helped convict 146 defendants and generated $186 million in fines and penalties. In addition, a Los Angeles team established in 2008 charged 37 defendants and generated $55 million for Medicare (CQ HealthBeat, 5/20).

Tony West, head of DOJ's Civil Division, said, "There is an incredible amount of money that can be recovered and returned to the health care trust fund, and that has a real impact" (Washington Post, 5/21). Sebelius said, "For every dollar we invest in fraud prevention and oversight, at least $1.55 comes back for the taxpayer" (CQ HealthBeat, 5/20). West added that health care has the "biggest single impact on the budget," and that pursuing health care fraud cases and recouping losses are "consistent with the president's agenda on health care reform" (Washington Post, 5/21).