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Clinton: Crack Down On Medicare Fraud

Home health-care firms to undergo greater scrutiny

WASHINGTON (AllPolitics, Sep. 15) -- President Bill Clinton today announced a crackdown on companies that defraud Medicare's home health-care programs.

The president's plan includes an unprecedented, immediate moratorium on new firms participating in Medicare home-health programs.

"During this moratorium," Clinton told members of the Service Employees International Union, a major health-care union, "we'll develop tough new regulations to ensure that no fly-by-night providers enter or remain in the Medicare program."

Clinton also said the government would begin requiring firms already doing business with Medicare to re-enroll every three years, and would double the number of audits performed each year on them.

The president said he was proud of the Medicare reforms his administration has accomplished. But, he added, "We can't maintain it for what it should be if we tolerate unacceptable levels of fraud and abuse."

Sources tell CNN that the administration will copy a Florida program and require home health providers to post at least a $50,000 bond before they can serve Medicare patients.

Also, the sources say the regulations will require companies to prove themselves by treating a minimum number of patients before they are certified for the Medicare program.

And new regulations will require providers to file more detailed financial disclosure detailing other businesses they own. The administration believes this will reduce fraud by firms that use shadow companies to inappropriately shift costs and bill the government for more than allowed under Medicare guidelines.

In Other News:

Monday Sept. 15, 1997

Weld Quits Nomination Fight
Christian Coalition Meeting Spotlights GOP Contenders
Clinton: Crack Down On Medicare Fraud
IRS To Audit Paula Jones
Lawmakers Consider Giving Themselves A Raise
AllPolitics E-Wire

E-mail From Washington:
Jones' Settlement Talks Set For Tuesday

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