[Weekly Compilation of Presidential Documents Volume 34, Number 50 (Monday, December 14, 1998)]
[Pages 2438-2440]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks on Efforts To Combat Medicare Fraud

December 7, 1998

    Thank you. I would like to welcome you all here today and thank 
Margaret Dixon for those fine remarks. I thank Deborah Briceland-Betts 
for representing the Older Women's League so well, and Nancy-Ann Min 
DeParle for the great job she does as our HCFA Administrator. I welcome 
our friend George Kourpias and representatives from the National Council 
of Senior Citizens.
    And I want to say a special word of appreciation to Senator Tom 
Harkin, who has been on top of this issue for a very, very long time, 
and has long needed more support from administrations. And we certainly 
tried to give him ours, but he has been a real trailblazer, and we thank 
him.
    I'd like to also thank, as others have, the HHS and especially June 
Gibbs Brown, the Inspector General, and Mike Mangano, the Deputy 
Inspector General, who is here today.
    I'd also like to say one other word about Senator Gore, Sr., who was 
mentioned by Nancy-Ann. Al Gore, Sr., was a leader in the development 
and the passage of the original Medicare bill over 30 years ago. And 
that is one of the many, many things we remember him for at this time of 
his passing.
    For more than 30 years now, Medicare has been more than a Government 
program. It has been a way that we could honor our obligations to our 
parents and our grandparents, an expression of the old profound American 
belief that the bonds of mutual love and support among the generations 
must remain strong. Any threat, therefore, to the integrity

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of Medicare is a threat to these bonds. And that is one of the main 
reasons that our administration has worked so hard to strengthen 
Medicare.
    The balanced budget bill I signed last year extended the life of the 
Medicare Trust Fund for a decade. We also established a commission 
currently working to help Medicare meet the needs of the baby boom 
generation and the rising costs that inevitably come as we all live 
longer and longer and require more health care.
    It is a troubling financial problem, but as a social matter it is a 
happy challenge. It is what I would call a high-class problem that we 
are all living longer and longer. But it does present us with certain 
real challenges which we have to face, and I look forward to getting the 
report from Senator Breaux and the Medicare Commission, and to working 
on a bipartisan basis with the next Congress to resolve this important 
matter.
    Today I'm announcing additional steps to strengthen Medicare by 
fighting the threat of Medicare fraud. Every year, Medicare is cheated 
out of billions of dollars, money that translates into higher taxes on 
working Americans, higher copayments in premiums for elderly Medicare 
recipients. This has become, as I said, especially significant as we 
grow older and more and more of us become eligible for Medicare.
    I'm proud of what we have already done to fight fraud and abuse and 
waste. Since 1993 we've assigned more Federal prosecutors and FBI agents 
to fight health care fraud. We've increased prosecutions by over 60 
percent, convictions by 240 percent, saved $20 billion in health care 
claims. Money that would have lined the pockets of scam artists now is 
helping to preserve the Medicare Trust Fund and to provide high-quality, 
affordable health care.
    But there is still more we can do. The private sector health care 
contractors that are responsible for fighting waste, fraud, and abuse 
too often are not living up to their responsibilities. We recently 
learned that one-fourth of those contractors have never reported a 
single case of fraud, even though the Inspector General is quite certain 
that fraud is pervasive in this area.
    Therefore, we are using new authority we fought for to create new 
weapons in the fight against fraud. Beginning this spring we will 
empower new, specialized contractors, Medicare fraud hunters, who will 
focus on waste, fraud, and abuse. These new fraud hunters, by tracking 
down scams and waste, can bring real savings to Medicare and strengthen 
the system for the 21st century.
    I'm also requiring all Medicare contractors to notify the Government 
immediately when they learn of any evidence of fraud, so that we can 
detect patterns of fraud quickly and take swift action to stop them. And 
I'm asking HCFA to report back to me early next year with a 
comprehensive plan to fight waste, fraud, and abuse further in the 
Medicare program.
    In the fight against Medicare fraud, Congress must also do its part. 
And I am encouraged by the bipartisan oversight hearings being held in 
Chicago this week by Senators Collins and Durbin. When it returns next 
year, I'll ask Congress to pass legislation that can save Medicare 
another $2 billion over the next 5 years: First, legislation that will 
allow us to empower our new fraud hunters to spot overpayments and keep 
crooked medical service providers from getting into the Medicare system 
to start with.
    Second, the legislation will allow Medicare to pay much lower rates 
for prescription medications. Under current law, Medicare loses hundreds 
of millions of dollars each year by paying as much as 10 times more than 
the private sector does for certain drugs. It's just wrong.
    Third, the legislation will force private insurers to pay claims 
that they are legally responsible for, so that Medicare does not get 
stuck with the bill. This happens more often than you would think.
    Fourth, legislation will allow us to crack down on medical 
providers, particularly those claiming to deliver mental health care, 
who bill for services they never, in fact, provide, a large and 
unfortunately, growing problem, according to our recent reports.
    By passing these commonsense measures to fight Medicare waste and 
fraud, Congress can do more than help save taxpayers' money. It can 
demonstrate a bipartisan desire to preserve and strengthen Medicare for

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the future. If we take these actions now, we can help to assure that the 
system that has served our parents and grandparents so well will be 
there to serve our children and grandchildren well into the 21st 
century.
    Thanks to the advocates who are here--Senator Harkin and others--I'm 
confident that is exactly what we will do next year.
    Thank you very much, and happy holidays.

Note: The President spoke at 12:50 p.m. in Room 450 of the Old Executive 
Office Building. In his remarks, he referred to Margaret Dixon, 
immediate past president, American Association of Retired Persons; 
Deborah Briceland-Betts, executive director, Older Women's League; and 
George J. Kourpias, president, National Council of Senior Citizens.