00:00:04.740 - 00:00:30.850

but the chair recognizes the senator from Florida. As president, I ask unanimous consent to speak for 10 minutes for purposes of introducing two bills without objection. Thank you, Mr President. Mr. President, This morning, on behalf of my colleague Senator Bacchus and Senator Pryor, I am introducing two bills which address the problem of Medicare fraud and abuse.

00:00:31.440 - 00:00:57.860

These two bills, entitled the Medicare Anti Fraud Act of 1996 and the Medicare Restore Trust Act of 1996 would undertake serious and strong anti fraud efforts by the federal government, based in large part on the success of the administration's recent Medicare anti fraud effort called Operation Restore Trust.

00:00:58.540 - 00:01:27.330

These bills would assure that savings achieved from such efforts as Operation Restore Trust would be returned to the Medicare Trust Fund. Mr. President, we have heard in the last few days some very troubling reports about the impending insolvency of the Medicare Trust fund. This legislation would have to direct contributions to reversing that move towards insolvency.

00:01:27.340 - 00:02:00.430

First, it would suit you a hemorrhage of funds out of the Medicare Trust Fund, which today are going for fraudulent billings, not for service to American citizens and second. It would assure that any funds that were recovered as a result of these more effective investigations and prosecutions would go directly back into the Medicare trust fund in order to restore it's financial base, Mr President.

00:02:00.440 - 00:02:46.050

Unfortunately, the praise, fraud, waste and abuse has become discredited. It has been used so often as an excuse for not dealing with the more difficult or fundamental problem. Unfortunately, in the area of Medicare waste, fraud and abuse is a part of the fundamental problem. It has been estimated that of the $180 billion spent last year on Medicare on approximately 36 million Americans, healthcare, that of that 180 million, 10% or $18 billion was wasted in fraudulent activity.

00:02:47.040 - 00:03:29.780

You might ask, why is there such a high level of fraud in this program of Medicare? Some of the reasons include that the amount of money that is being expended is huge, $180 billion and growing that is being spent largely on populations which have groups within it that are vulnerable to these fraudulent schemes that those people who wish to perpetrate those schemes are sophisticated shysters and there has been lax enforcement with fraud, pilfering the health system's resources, losses in Medicare and the federal share of Medicaid.

00:03:29.790 - 00:03:57.060

The program for low income Americans been estimated to reach possibly as high as $30 billion annually. Using the most conservative estimates. We could cover an additional two million older Americans each year with the funds that are lost to Medicare through waste, fraud and abuse. Two million additional Americans could be covered if those funds could be properly directed.

00:03:57.840 - 00:04:20.350

Although it is increasingly unlikely that the Medicare reform package will pass this year in Congress, it would be, in my judgment, unconscionable not to pass legislation relating to Medicare, waste, fraud and abuse. Rather than putting the Medicare beneficiaries at risk of losing coverage or access with cuts that some have recommended.

00:04:20.740 - 00:04:49.260

We should act instead to combat Medicare fraud and to protect the health care beneficiaries and the Medicare trust funds, as the Citizens Against Government Waste wrote on August 23rd 1994 and a report entitled Medicare Fraud. Tales From the Chip Quote, Preserving, protecting and Strengthening Medicare must be the number one priority for Congress and this administration.

00:04:50.840 - 00:05:21.560

How did we get to such a problem. According to the General Accounting Office report in February of last year entitled Medicare Claims Quote, physicians Supply Companies, diagnostic laboratories have about three chances out of 1000 of having Medicare audit their billing practices in any given year. Moreover, Medicare pays more claims with less scrutiny today than at any other time over the last five years.

00:05:21.570 - 00:05:49.360

G, a report continues. In fiscal year 1993 Medicare processed almost 700 million claims about 250 million more claims than it processed five years early. And despite this rising volume of claims proclaimed, funding for anti fraud and anti abuse activity declined between 1989 and 1993 by over 20%.

00:05:49.940 - 00:06:20.560

Rising number of claims being processed. Declining amount of resources available to assure that those claims are free from fraud and abuse. Mr. President The situation has gotten so serious that FBI Director Louis Free has stated that cocaine distributors are now leaving drug trafficking and moving into Medicare fraud because they find that it has greater potential for income with less risk of being detected.

00:06:21.440 - 00:06:48.550

Drug dealers committing health care fraud know that law enforcement is not yet equipped with the laws of the resources to effectively attack this problem, with the program estimated by the Congressional Budget Office to be spending over $1.6 billion over the next six years with lax laws to combat abuse, con artists, thieves and opportunities know that Medicare is where the money is easy.

00:06:49.240 - 00:07:09.700

Attacking fraud is crucial to the overall Medicare debate. For a number of reasons, it ought to be the first place we look when considering reductions in Medicare expenditures. It undermines public confidence in Medicare. There is tremendous opportunity for return by an effective assault against Medicare fraud.

00:07:09.710 - 00:07:44.200

Operation Restore Trust was funded with four million $4 million recovered $43 million a ratio of almost $1 of expenditure on anti fraud activity to $11 of return. And there are some solutions available in order to strengthen our capacity against Medicare fraud, the inspector general of the Department of Health and Human Services, Miss June Gibbs Brown, testified at a hearing before the Senate Finance Committee.

00:07:44.200 - 00:08:22.160

That quote, now is the time to implement new legal remedies and reverse the downward trend of funding for efforts to combat health care fraud and abuse. The legislation that I am introducing today will achieve both of those goals. Mr. President, Operation Restore Trust is an effort currently underway in just five states, which brings together the HHS Office of Inspector General, the Health Care Financing Administration, the Department of Justice, state Medicaid agencies and State Medicaid fraud control units to combat fraud and abuse.

00:08:22.740 - 00:08:55.170

This legislation would move that effort from five states to 50 states. The Department of Health and Human Services recently released results of the first five years, the first year of Operation Restore Trust. As I indicated, it showed a $1 expenditure to $11 of return. The program has been a great success, but I agree with the Inspector general that it is quote the tip of the iceberg to provide adequate resources to go after fraud and abuse.

00:08:55.180 - 00:09:17.660

We establish a Medicare anti fraud account for the Inspector General and an anti fraud control account for other government agencies. Use funds for the Medicare account will be provided by and returned to the Medicare trust funds by using trust fund dollars to augment inspector general operations.

00:09:17.830 - 00:09:44.490

The legislation assures that the Inspector General will continue to have the resources necessary to combat fraud and abuse without worrying about discretionary spending cuts. This legislation also Mr President, enacts a broad based federal statute aimed at suppressing Medicare fraud. This enhances the protection of fraud victims and prescribe stiff penalties against those convicted of fraud.

00:09:44.490 - 00:10:10.340

Institute a policy one strike and you're out one instance of Medicare fraud, and you are out of the program for at least five years. The second bill would establish a point of order against any piece of legislation that would divert savings from anti fraud waste and abuse enforcement activities for any other purpose, such as new federal spending or tax breaks.

00:10:10.410 - 00:10:48.160

Any other purpose other than saving the Medicare trust funds. This legislation would also assure that any savings from anti fraud waste and abuse activities reimburse the upfront investment on enforcement and further strengthen the Medicare trust fund. Mr. President, we have all promised to protect Medicare. We can do so by passing comprehensive Medicare waste fraud and abuse legislation and do it in 1996 thus assuring savings achieved are used to protect Medicare and approve its solvency.

00:10:48.740 - 00:11:31.550

The two bills we're introducing today the Medicare Anti Fraud Act of 1996 and the Medicare Restore Trust Act would accomplish these goals. Mr. President, I suggest that these legislation that these two pieces of legislation should get the immediate attention of this Senate, and I am pleased to see that we have with us today the chairman of the Senate Finance Committee, which I assume will be the primary committee of reference for consideration This legislation every day that passes allows for further waste of federal taxpayers money, further eroding the solvency of the Medicare Trust fund, further erosion of the confidence of the American people.

00:11:31.940 - 00:12:08.650

We must act and act now. At the signing of the Medicare bill in Missouri 30 years ago, President Johnson said Medicare had been planted with the seeds of compassion and duty, which have today flowered into care for the sick and serenity for the fearful. Medicare has lived up to that promise of President Johnson and President Truman, but fraud is rotting away at the root system of the Medicare program.

00:12:09.340 - 00:12:33.290

We have the prescriptions to combat that fraud. Now, Mr President, is the time to employ them. If we want to save the integrity of Medicare for future generations. Mr. President, I send you the bill. Two pieces of legislation and I ask unanimous consent that the full text of my statement be included in the record without objection.

00:12:33.300 - 00:12:35.950

Thank mm.