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Or some hospitals/firms overcharge Medicare for medical supplies and equipment. Medicare pays 86 cents for a gauze pad that costs another government agency 4 cents, and $186 for a home blood testing device that is widely available for less than $50 (Korcok, 1997). There were also overcharging and improper referrals, and even payoffs for providing the names of new HMO enrollees. Such abuse leads to budget deficit problems and brings about a negative image of the programs.
The programs are perfect targets for the fraudulent firms, providers, and suppliers to swindle money because the programs are fragmented and not well supervised...
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