    [Public Papers of the Presidents of the United States: William J. Clinton (1998, Book I)]
    [January 24, 1998]
    [Pages 109-110]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's Radio Address
    January 24, 1998

        Good morning. Today I want to talk about our continuing efforts to
    fight fraud and abuse in the Medicare system.
        For more than 30 years, Medicare has helped us to honor our oldest
    obligations to our parents and grandparents. And since I took office,
    our administration has made strengthening Medicare one of our top
    priorities. The balanced budget I signed into law last summer will
    extend the life of the Medicare Trust Fund for at least a decade. But to
    ensure that Medicare is as strong in the 21st century as it has been in
    the 20th, we must also do more to root out fraud and abuse.
        Medicare fraud cheats beneficiaries and taxpayers out of billions of
    dollars every single year. It undermines the strength of this vitally
    important program. Since 1993, we've assigned more Federal prosecutors
    and investigators to fight Medicare fraud than ever before, increasing
    fraud convictions by a record 240 percent. All told, we've saved
    taxpayers over $20 billion. And the Kennedy-Kassebaum legislation I
    signed into law in 1996 has given us new resources and tools to
    investigate, prosecute, and convict dishonest providers and medical
    suppliers.
        On Monday, I'll send to Congress a report that shows just how
    effective those new tools have been. I'm proud to say that in the last
    year alone we've collected nearly a billion dollars in fines and
    settlements for health care fraud. Money that would have lined the
    pockets of scam artists is now going instead to preserve the Medicare
    Trust Fund and to improve health for millions of Americans. We've
    increased prosecutions for health care fraud by more than 60 percent,
    and we've stopped health care fraud before it starts by keeping nearly
    twice as many bad providers out of the system.
        Now, make no mistake; Medicare fraud is a real crime, committed by
    real criminals intent on stealing from the system and cheating our most
    vulnerable citizens. Let me just give you one example.
        In New York City, a Russian immigrant, believed by Federal
    investigators to be part of an organized crime ring, defrauded Medicare
    of $1\1/2\ million by selling substandard medical

    [[Page 110]]

    supplies to elderly people and billing Medicare for premium goods. We
    shut him down and put him in jail, but he never should have been a
    Medicare supplier in the first place.
        Last week I put in place new regulations that require medical
    suppliers to post surety bonds to prove they're legitimate, solvent
    businesses. And to further ensure that medical suppliers aren't
    defrauding Medicare, the Department of Health and Human Services will
    expand its site inspections of medical supply companies all over the
    country.
        But we must do more to crack down on fraud and abuse in the Medicare
    system. The balanced budget I'll submit to Congress next month will
    include antifraud and waste provisions that will save Medicare more than
    $2 billion. First, it will eliminate overpayment for certain drugs by
    making sure doctors receive no more and no less than the price they pay
    for the medicines they give Medicare patients. Second, it will ensure
    that when fly-by-night providers go bankrupt, Medicare is at the top of
    the list of debts to be repaid. And finally, it will bring down costs by
    allowing Medicare to purchase goods and services at a competitive price.
        We will only win the fight against fraud and abuse in the Medicare
    system with the help of the American people. We know that patients and
    honest providers want to help crack down on fraud and abuse. Starting
    next month we'll make it easier for them to do so, with a toll-free
    hotline that will now appear on every statement Medicare sends out to
    every beneficiary it serves.
        With these steps, we're making sure that the Medicare system, which
    has served our parents and grandparents so well, will also serve our
    children and grandchildren well into the 21st century.
        Thanks for listening.

    Note: The address was recorded at 5:13 p.m. on January 23 in the
    Roosevelt Room at the White House for broadcast at 10:06 a.m. on January
    24.