The social security administration estimates ~$60b a year in fraud on ~$400b budget! [1] [2]. People can have a rational discussion as to where and how fraud and abuse are rooted out, but I have trouble understanding how people don’t think it’s an issue?
The problem is that the real perpetrators of the fraud are just trying to redirect the blame to regular citizens. The biggest source of fraud is the insurance and hospital industry itself. See the example of Rick Scott: https://en.wikipedia.org/wiki/Rick_Scott, yes, that Rick Scott- current Senator from Florida.
> Scott was pressured to resign as chief executive of Columbia/HCA in 1997. During his tenure as chief executive, the company defrauded Medicare, Medicaid, and other federal programs. The U.S. Department of Justice won 14 felony convictions against the company, which was fined $1.7 billion in what was at the time the largest healthcare fraud settlement in U.S. history.
In short, yes there's fraud, yes it's a problem, and the biggest offenders are probably insurance companies. This shouldn't surprise anyone who has dealt with the US health insurance scam, er, I mean system.
P.S. To clarify for others who may not bother to click into the links, the parent post mentions the social security administration but the numbers and sources are specifically referring to Medicare, which is what I'm responding to.
Medicare would not include SSN payments, though? With a quick search showing Medicare will have a trillion dollar budget. Feels like you are picking incompatible numbers to exaggerate a point.
Fraud is also tough, as it is an optimization problem. You want the amount of fraud to be less than what it would cost to fight it more. Especially since a lot of mistakes are labeled as a type of fraud.
[1] https://blog.ssa.gov/medicare-fraud-prevention-week/ [2] https://www.usaspending.gov/explorer/budget_function