Health Care Reform: How Proposals Address Fraud and Abuse

GAO discussed administrative remedies that will lessen the health care system's vulnerability to fraud and abuse. GAO noted that: (1) weaknesses in current health insurance systems allow unscrupulous health care providers to cheat insurance companies and programs out of billions of dollars annually; (2) the nation's current health care information systems need to be streamlined and enhanced to reduce fraud and abuse; (3) consumers should be provided with adequate protections and empowered to make better health care choices; (4) adequate safeguards should be established against excessive cost-cutting by prepaid plans that could limit access to health care; (5) law enforcement mechanisms should be strengthened for insurers to pursue and recover money from fraudulent providers; and (6) the administration's health care reform plan and other recent reform proposals provide the basis for reducing health care fraud and abuse.