Congressmen want to withhold Medicare payments to tax-delinquent docs

Doctors and other health care providers who owe the federal Treasurymore than $1 billion in back taxes are still receiving governmentchecks for treating Medicare patients.  In one case, adoctor received nearly $100,000 in Medicare payments during the firstnine months of 2005 despite a $600,000 overdue tax bill. The doctorowned several homes, including one overseas.  Anotherphysician gambled millions of dollars and purchased a luxury car —while defaulting on an installment agreement with the IRS that requiredmonthly payments of $10,000. Medicare paid that physician about$100,000 in 2005.  In all, congressional auditors estimatethat more than 21,000 physicians and other health care providers areabusing the federal tax system. The taxes that went unpaid for just thefirst nine months of 2005 exceeded $1 billion, and investigatorsbelieve that estimate to be a conservative one. Lawmakerswant the Health and Human Services Department to participate in apayment system that would allow the government to garnish a percentageof the Medicare reimbursements going to tax scofflaws.  “Whatyou see are cases of folks who are really living the good life,” saidSen. Norm Coleman, R-Minn. “These are not folks who are scraping by,and somehow, just by timing, they can’t meet their obligations.  Inrecent years, the Senate Committee on Homeland Security andGovernmental Affairs has investigated an array of contractors whobenefited from government payments even as they declined to pay federaltaxes.  Now, the committee, in particular its PermanentSubcommittee on Investigations, is focusing on the health care system.It asked the Government Accountability Office to determine ifphysicians and other health care providers have unpaid federal taxesand, if so, to determine the magnitude of the problem.  “Ourinvestigation found abusive and potentially criminal activity,” theGAO’s investigators are expected to tell the subcommittee on Tuesday.”Many of these individuals accumulated substantial wealth and assets,including million-dollar houses and luxury vehicles, while failing topay their federal taxes.”

Source: Kaiser Family Foundation/AP/Houston Chronicle.

Ed:  I have a better idea.  Prosecute them and throw them in prison.