The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“CONGRATULATIONS TO SENATOR LOTT” mentioning the U.S. Dept. of Justice was published in the Senate section on pages S6115-S6116 on June 12, 1996.
The publication is reproduced in full below:
CONGRATULATIONS TO SENATOR LOTT
Mr. COHEN. Mr. President, let me first add my congratulations to the new majority leader. I think that Trent Lott will do an outstanding job and one that will certainly make our party proud, but the country proud as well. I was pleased to have his colleague, Thad Cochran, with whom we both entered Congress, stand up in a true southern fashion, extend his warmest wishes and willingness to work with you. It will be a great team from Mississippi and for the rest of the country. I add my accolades to you, Mr. Leader.
HEALTH CARE FRAUD AND ABUSE
Mr. COHEN. I want to take a few moments to talk about something that is of great importance to me. As is so often the case in Washington, misinformation is flying about the effects of legislation being considered in Congress. It is customary in this country and in this Congress, to have, just as we are negotiating the last-minute details to legislation, some interest group come forward, place a provocative ad in the newspaper, and try to destroy that legislation.
I am referring to the fraud and abuse provisions in the Kennedy-
Kassebaum health care legislation that is now in the final stages of a conference. Recently, the American Medical Association placed a full-
page ad in the Wall Street Journal. The ads are slick and very clever--
it shows a doctor, with a stethoscope hanging down, in the ``docks.'' It says, ``We (the AMA) are opposed to fraud and abuse. We know it is a serious problem, but if doctors willfully and knowingly violate our Nation's laws, they should be punished.''
Mr. President, this is precisely what the legislation does. Then the ad goes on to say, ``But honest mistakes should not make physicians or any other citizens candidates for incarceration.'' We agree.
This legislation has been worked on for the past 3 years. As a matter of fact, this particular ad is not only misleading, it is false. It is absolutely false advertising that the AMA has engaged in, along with other physician groups who have written articles.
To distort the intent and scope of the provisions in this fashion minimizes the very real threat that fraud poses to our health care system and, indeed, to the solvency of Medicare. Medicare trustees have said the trust fund is going broke--not in 6 years--but in 5 years. One of the reasons it is going broke is because so much fraud and abuse is being perpetrated on the American people. As we are asking Medicare beneficiaries and honest providers to share the burden of changes to arrest the growth of Medicare, it is our duty to do all we can to get the waste, fraud, and abuse out the program.
According to the General Accounting Office, we are now losing as much as $100 billion from fraud and abuse every year. The losses to Federal health care programs, such as Medicare, Medicaid, and CHAMPUS, is about
$40 billion or 40 percent of the total.
Mr. President, it is a grand scale of theft that is taking place. We have heard testimony that organized crime has moved into health care fraud. We heard testimony that drug dealers have moved into health care fraud because there is more money and it is easier for them to perpetrate this crime rather than trying to sell drugs with the FBI breathing down their neck. As Willie Sutton said, ``that's where the money is.''
Let me give you a couple of examples that have come to my attention. I have had hearing after hearing on this subject matter. Seven months ago, a physician testified before the Senate about his involvement in a clinic scam in Los Angeles. The physician participated in a scheme that involved phony prescriptions, paid patients, and resulted in losses over $800,000 to the Medicaid Program.
In another case, the owner of a home health care company built a beautiful $2.5 million mansion with money he made from phony Medicare billings.
A New York physician defrauded the Medicaid Program of more than $1.5 million by fraudulently charging for 25,000 drug treatments never given to recipients.
We have even heard of a case where a psychiatrist billed for 50,000 phantom therapy sessions never given to patients.
That is just a small sample of what we are trying to deal with today. And that is why we passed this important legislation by overwhelming numbers in this body.
The health care fraud provisions now being considered by the Senate and House conference committee do address this problem in a reasonable, measured manner that does not infringe on personal liberties nor penalize innocent mistakes. The bill closes loopholes in current law and provides criminal penalties for a defined set of serious and egregious violations such as embezzlement. The fraud and abuse provisions substantially mirror existing fraud statutes and are designed to give enforcement more precise tools to protect consumers against fraud and abuse. Contrary to claims that the bill will unleash an army of intrusive investigators trying to entrap innocent doctors, the proposal simply provides adequate resources for prosecutors and investigators, long strapped by budget cuts and under staffing to go after serious patterns and cases of abuse.
The AMA's claim that ``honest mistakes'' of doctors or any other citizens makes them ``candidates for incarceration'' is simply false. Far from going after honest mistakes, the criminal sanctions will be used to prosecute egregious, intentional acts of fraud against health plans.
Mr. President, the final thrust of the attack ads that are being leveled against this legislation is that this is Clinton's health care plan revisited. That, too, is absolutely false. This legislation was developed in response to the recommendations put forth by a task force put together by President Bush, which was headed by a Justice Department that was dominated at the top level by President Bush appointees. It has been endorsed by Bob Dole, our former majority leader, and virtually everybody in our leadership for many years. These provisions have passed twice before during this Republican-controlled Congress and have been the subject of numerous hearings in both the Senate and House. The notion that somehow this is Clinton II slipping through the cracks at the last moment is completely false.
We have to deal with health care fraud in a direct and responsible fashion. The legislation we passed by an overwhelming majority in this body, unanimously, as I recall, deserves not to be undercut by false and misleading advertising. I hope my colleagues reject these kinds of last-minute scare tactics which the AMA and others are engaged in. The only ones to gain from failing to pass this antifraud package are those who are intentionally ripping off the system. All the rest of us are the big losers--the vast majority of honest health care providers, taxpayers, and families who are footing the bill for the fraudulent providers in the form of higher taxes and health care costs.
Mrs. FEINSTEIN addressed the Chair.
The PRESIDING OFFICER. The Senator from California.
(The remarks of Mrs. Feinstein pertaining to the introduction of S. 1865 are located in today's Record under ``Statements on Introduced Bills and Joint Resolutions.'')
Mrs. FEINSTEIN. Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mrs. FEINSTEIN. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
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