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Thu Aug 2, 2012, 07:04 AM

GOV'T REPORT: TAX CHEATS GETTING PAID BY MEDICAID

http://hosted.ap.org/dynamic/stories/U/US_MEDICAID_TAX_DELINQUENTS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-08-02-03-07-31

WASHINGTON (AP) -- Thousands of Medicaid health care service providers still got paid by the government even though they owed hundreds of millions of dollars in federal taxes, congressional investigators say. A legal technicality is making it harder for the IRS to collect.

In a report being released Thursday, the Government Accountability Office says Medicaid payments to doctors, hospitals and other providers aren't technically considered federal funds, since they're funneled through state health care programs.

Because of that glitch, the IRS can't just shut off the payment spigot to collect tax debts. Investigators only looked at three states, so the full extent of the losses is even greater.

One dentist who received more than $100,000 from Medicaid while owing back income taxes was spending money on fine dining, trips, spas, shopping and wine, the report said.

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Reply GOV'T REPORT: TAX CHEATS GETTING PAID BY MEDICAID (Original post)
xchrom Aug 2012 OP
Zalatix Aug 2012 #1
rfranklin Aug 2012 #2
Zalatix Aug 2012 #3
exboyfil Aug 2012 #4

Response to xchrom (Original post)

Thu Aug 2, 2012, 07:23 AM

1. If the Government stopped paying these providers due to tax evasion, what then?

 

Would said providers simply go out of business and what impact would that have on their patients?

Edited to add: can we spell E X T O R T I O N?

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Response to Zalatix (Reply #1)

Thu Aug 2, 2012, 07:25 AM

2. If their reimbursements were applied to the taxes they owed, this would stop...

 

Some would go out of business but most would not.

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Response to rfranklin (Reply #2)

Thu Aug 2, 2012, 07:34 AM

3. That's the economic side of it. I'm wondering about the potential for tantrum-throwing.

 

"Let me get away with not paying taxes or I'll STOP providing medicare services".

Sorry, I am in the "think the worst of capitalism" mood nowadays. So far reality has proven more cynical than me.

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Response to Zalatix (Reply #3)

Thu Aug 2, 2012, 08:09 AM

4. Treat it like a garnishment

Take a percentage of the income until debt satisfied. That way provider will still have incentive to provide services (just as a someone being garnished). If individual continues to violate tax code, use criminal penalties.

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