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Health Care Policy Center

Why Medicare & Medicaid fraud dwarfs commercial endevours

" Politicians are spending other people’s money, so their incentive to prevent fraud is far less. Therefore, fraud will always be higher in government programs than in similar market endeavors." Continue reading

Michael Cannon at Cato summarizes:

The basic theorem is this: market actors have greater incentives to prevent fraud, because it’s their own money on the line.  Politicians are spending other people’s money, so their incentive to prevent fraud is far less.  Therefore, fraud will always be higher in government programs than in similar market endeavors.