$60 Billion Lost Annually
Medicare loses billions of dollars each year due to fraud, errors, and abuse. In 2014 testimony before the Senate Special Committee on Aging, the National Health Care Anti-Fraud Association placed these losses at approximately $60 billion annually, though the exact figure is impossible to measure. The most commonly cited range for all health care fraud estimates is 3 to 10 percent of annual health care expenditures. 2012 Medicare expenditures were nearly $600 billion and are expected to rise as the baby boomer population ages.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. (See https://oig.hhs.gov/fraud/strike-force.)