Clinton submits Y2K budget proposals on health fraud
February 15, 1999
Clinton submits Y2K budget proposals on health fraud
In his fiscal year 2000 budget, presented to Congress on Feb. 1, President Clinton projected the government would save $2.9 billion over five years through implementing the following measures to combat waste, fraud and abuse:
- Limit Medicare payments to provide for outpatient drugs to 83% of the average wholesale price.
- Reduce the lab fee schedule ceiling from 74% to 72%;
- Require that insurers report to HCFA all Medicare beneficiaries they insure;
- Grant HCFA authority to fine private insurers twice the amount owed if they intentionally allow to government to pay claims for which they are responsible.
- Impose stricter controls on Medicare’s partial hospitalization benefit to ensure the government pays for therapy actually provided to beneficiaries.
- Clinton also proposed to raise $194.5 million by charging providers user fees to participate in the Medicare program.
While the budget proposes to increase overall spending by $11.5 billion, providers can expect cuts of $9 billion.