Tom Harkin: “over the last several years when I was Chair of the Subcommittee on Appropriations that funded HCFA and Medicare, we…”

“over the last several years when I was Chair of the Subcommittee on Appropriations that funded HCFA and Medicare, we held a series of hearings, and I requested GAO to do a number of studies on waste, fraud, and abuse in the Medicare system. What we have uncovered is mind boggling: HCFA paying for 240 yards of tape per person per day--Medicare paying that. Medicare paying over some $200 for a blood glucose tester that you can buy down at Kmart for $49.99. Medicare is paying thousands of dollars for devices that only cost $100. Foam cushions that cost about $50 that Medicare is paying $880 each for. The list goes on and on and on, and we know it is happening out there. We know how medical suppliers are scamming the system, double billing going on. We have documentation. GAO has documented this in the past. Last year, I asked the GAO to do a study just on medical supplies-- just on medical supplies. They started their study in about May or June 1994, and the study was completed in August of this year. They issued their report. GAO went to Medicare and said, ``We want to take a representative sample of bills that you have paid for medical supplies.'' You have to understand, Mr. President, that when Medicare pays a bill for medical supplies, they do not even know what they are paying for, because all of the supplies are put under one code, 270. So Medicare pays a bill, code 270, medical supplies, $20,000.…”