[Congressional Record Volume 143, Number 50 (Thursday, April 24, 1997)]
[Extensions of Remarks]
[Page E741]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               MEDICARE ANTI-FRAUD AMENDMENTS ACT OF 1997

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                         HON. KAREN L. THURMAN

                               of florida

                    in the house of representatives

                        Thursday, April 24, 1997

  Mrs. THURMAN. Mr. Speaker, today, I am pleased to join with the 
ranking member of the Health Subcommittee, Mr. Stark, and Messrs. Shaw 
and Davis in introducing the Medicare Anti-Fraud Amendments Act of 
1997. We are offering this legislation to weed out unscrupulous 
providers in Medicare. This bill will not only protect beneficiaries 
and respectable providers, but also prevent the funneling of needed 
health care dollars into the hands of health care scam artists.
  In the State of Florida, we have had tremendous success in fighting 
fraud in the Medicaid Program by requiring service providers such as 
Durable Medical Equipment suppliers, private transportation companies, 
non-physician-owned clinics, and home health agencies, to post a 
$50,000 surety bond in order to participate in Medicaid. The bonding 
requirement is no obstacle to legitimate providers, but presents a 
serious roadblock to Medicaid scam artists. Through the bond 
requirement, Florida has decreased the number of DME providers 62 
percent, from 4,146 to 1,565 and home health agencies have decreased 41 
percent from 738 to 441; these reductions have had no impact on patient 
care. In fact, the surety bond requirement helped Florida to identify 
49 DME providers who were using post office box numbers to bilk the 
Medicaid Program.
  The problems Florida has identified are not unique to Medicaid. 
Medicare can clearly benefit from Florida's experience. Our bill 
requires Medicare to institute the same bonding requirement, a $50,000 
surety bond for DME providers, private transportation companies, 
clinics that furnish nonphysician services, and home health agencies. 
In addition, it requires providers to disclose all officers, directors, 
physicians, and principal partners owning 5 percent or more of the 
service.
  Every Medicare dollar gained by fraudulent providers is a dollar lost 
for our senior citizens. We must end these scams, and surety bonds are 
an essential step in this fight.

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