Reid: Cutting fraud, waste could keep Medicare alive

Paul Kane

Thursday, Dec. 4, 1997 | 10:58 a.m.

WASHINGTON -- The problems of fraud and waste in Medicare are being targeted by Sen. Harry Reid, D-Nev., and other Senate Democrats.

Reid said at a hearing Wednesday that cutting waste and fraud could save Medicare from pending bankruptcy. Alluding to previous GOP proposals, Reid warned against steep cuts in services to the federal health-care program for the elderly.

"Before we reduce benefits, raise taxes or change eligibility standards, let us first ensure current and future beneficiaries that the fraud, waste and abuse are being addressed," Reid said. "I know from my travels home that the American people want assurances that we are watching closely over this issue."

Reid noted a recent report showing there is $23 billion a year in Medicare fraud. He cited one Nevada resident whose doctor tried to bill Medicare about $400 for "physical therapy," which amounted to teaching the elderly man how to use a walker, and said eliminating waste and fraud were the necessary first steps in securing Medicare's future.

Wednesday's hearing was the first of several for Reid, chairman of the Senate Democratic Policy Committee. This committee will shape the Democrats' agenda and set the tone for the 1998 elections.

With health-care costs rising sharply, and the elderly population swelling as Baby Boomers approach retirement, Medicare funding faces bankruptcy. The White House estimated the funds would dry up shortly after the turn of the century, but the balanced budget agreement signed last summer is supposed to draw $115 billion in savings by reducing payments to doctors and hospitals that care for Medicare patients.

Those savings could keep Medicare on life support through 2007.

In 1995, Republicans such as Rep. John Ensign, R-Nev., supported proposals cutting more than $240 billion from the program.

On Wednesday, Ensign, who is running against Reid in 1998, accused Democrats of avoiding tough choices on Medicare during the 40 years they controlled Congress. He said allowing the elderly to choose among Medicare and other private medical plans would increase efficiency.

"Let's see a proposal (to cut waste)," Ensign said of the Democrats. "It's nothing new. At least we tried to do something about it."