A new study by the Government Accountability Office discovered that the 7,000 Medicaid providers had an estimated $791 million in unpaid federal taxes from 2009 or earlier, but still received about $6.6 billion in Medicaid reimbursements that year. The three chosen states were Texas, Florida, and New York.
Around 40 Medicaid providers were researched. They consisted of home care providers, dentists, doctors, hospitals, medical suppliers, and others. These businesses and individuals received a total of $235 million in Medicaid reimbursements, while having unpaid taxes of about $26 million. The amount of unpaid federal taxes ranged from approximately $100,000 to over $6 million. According to the report these 40 cases, show “the sizable amounts of unpaid federal taxes owed by some Medicaid providers, are among the most egregious examples of Medicaid providers with unpaid federal taxes we identified.”
About 5.6 percent of the Medicaid providers reimbursed by the selected states during 2009 are represented. The report also stated that the amount of unpaid federal taxes that the Government Accountability Office identified is most likely minimized because taxpayer data from the Internal Revenue Service emulates only the amount of unpaid taxes either reported on a tax return or assessed by the IRS through enforcement. It does not include businesses and individuals that did not file tax returns or underreported their income.
According to the Government Accountability Office two of the providers reviewed by investigators are currently, or were previously, under criminal investigation. One case of criminal behavior was a provider caught in a medical billing fraud scam. Then, another company was found guilty of “improperly prescribing controlled substances.” Meanwhile other providers had been fined, disciplined, and/or had their licensed revoked by the state regulatory agencies and others.
The senate has vowed to crack down on fraud in the federal health care programs. In reaction to the GAO report the senate introduced the Medicare and Medicaid Fighting Fraud and Abuse to Save Taxpayers Dollars Act. It is also known as the Fast Act.
“It is outrageous that health care providers who cheat on their taxes are getting paid with taxpayer dollars through the Medicaid program.” Stated by Carl Levin, D-Mich, who chairs the subcommittee. “The federal government ought to prohibit health care providers with unpaid taxes from enrolling in Medicaid, allow continuous levies on health care providers’ Medicaid payments to recover unpaid taxes, and authorize tax levies on Medicaid payments to Managed Care Organizations whose doctors or other principals are tax delinquent.”
If you have tax debt you are unable to pay or any other questions our tax settlement professionals are happy to discuss you’re tax resolutions free of charge. For more information about our services, visit us today at www.professionaltaxresolution.com. With over 16 years in the business of resolving tax debt, we have a thorough understanding of tax law together with the experience to know which settlement option will be the best fit for your specific set of circumstances.
For more information about our tax debt resolution services visit us at www.professionaltaxresolution.com. Contact us by phone at 877-889-6527 to receive a free, no obligation consultation
