Who Will Keep Government-Run Insurance Honest?

Ernest Istook / July 23, 2009

President Obama again trumpeted his claim last night, that we need government-run health insurance “to help keep the insurance companies honest.” He should check with his own Justice Department about dishonesty in government-run health plans.

The state and city governments in New York this week agreed to pay a $540 million fine, $440 million from the state and $100 million from the city, to settle accusations that they defrauded Medicaid. It’s a record-high Medicaid recovery from a public entity.

According to the Department of Justice press release, the governments “knowingly submitted” fraudulent claims. (more…)