A Better Way to Save Detroit?
G.M., Ford and Chrysler say they need a $25 billion government bailout. A good way to come up with the money might be to recover the $35.8 billion in taxpayer money lost in Medicare and Medicaid billing errors and improper payments recently identified by the Centers for Medicare & Medicaid Services (CMMS).
According to a CMMS investigation, the cost of errors in Medicare bills submitted by doctors amounted to $10.4 billion in Fiscal Year 2008. Errors in bills submitted by insurance companies in the Medicare Advantage program accounted for a loss of $6.8 billion in 2006, and errors in Medicaid bills cost the federal government $18.6 billion.
Oh, errors in the State Children's Health Insurance Program (SCHIP) cost the government $0.8 billion, but $800 million seems hardly worth mentioning anymore.
Also See:
Thinking About Private Sector Bailouts (US Politics)
Obama Urges Congress to Stimulate Economy (US Economy)
Comments
While I absolutely agree that every effort should be made to recover all funding inappropriately billed by the insurance companies I would certainly not use the recovered funds for any purpose other than shoreing up medicare & medicaid.
This smacks of the old philosophy of robbing Peter to pay Paul. Havent we seen monies taken from Social Security to support other initiatives in the past, and we all know how well that has worked out.
I am not happy aboutany of the government bailouts for Wallstreet or the Banking industry as they too created the mess we now find ourselves in but I guess we must do something to strengthen the economy.
I find myself somewhat angered by the rush to aid the individuals and institutions who through reckless risk and greed have brought down our whole economy when we stand by and watch the last vestages of manufacturing capability crumble and point fingers at management of those companies. Detroit at least makes something, shouldent that count for something? An if we loose the last of our heavy manufacturing capability what is left?
I say take some of the funding set aside for the Wallstreet crooks and bail out detroit.
I agree, Dana. And furthermore, Detroit and everyone else getting a financial hand from Uncle Sam should be treated like the citizen on SSI or SSA or all those other programs set up for people who weren’t fortunate enough to be able to have big retirement funds, limos, private jets, and big mansions, or take their money to the spa and enjoy themselves a la AIG. The people in charge should be treated just like we are. They should not be permitted incomes past the point of covering more than necessary until they can pay back the taxpayer/lender, they should downsize their private lives if neccessary to accommodate that. After all, they were willing to live the high life when times were good, now they need to do what they have to and treat it as a challenge belonging to the life they chose. Isn’t it what they expect the people who have been working for them all this time to do?