Medicaid health-care providers still paid by U.S. despite tax debts
Source: Washington Post
Thousands of Medicaid health-care service providers were still 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 released Thursday, the Government Accountability Office said Medicaid payments to doctors, hospitals and other providers aren’t technically considered federal funds because 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.
Read more: http://www.washingtonpost.com/politics/medicaid-health-care-providers-still-paid-by-us-despite-tax-debts/2012/08/02/gJQAXPZhSX_story.html?wprss=rss_politics
