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Medicare, Medicaid Reform Needed as Part of Potential Fiscal Cliff Deal?

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    Former Sen. George LeMieux, (R-Fla.), on the need for entitlement reform in an effort to reduce government spending.

  • Duration 5:37
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Our country's debt problems deepening by the date yet many Democrats still refuse to acknowledge the elephant in the room.

We need to reform our massive entitlement programs in hopes of preventing the US from going over the fiscal cliff.

But our next guest says there's a lot of tough talk and little action on -- front former Republican senator George LeMieux.

A Florida joins me now thanks for coming on the show we read your op Ed in the Wall Street Journal and thought wow would get a talk about this.

Look I know you've written a lot about fraud but I want to start -- you with this idea that there's some discussion.

Of getting Medicare reform.

Into the fiscal cliff talks do you think anybody serious about that.

Well there needs to be Medicare is the largest growing expenditure in the federal budget.

And if we -- reformed the way that we pay out Medicare.

It's going to be one of the things that breaks the bank and make us unable to meet our obligations -- we absolutely have to reform it.

And the legislation that I wrote back in 2010 that we -- -- bipartisan support.

And signed by the president went after something that everybody's against and that's fraud are -- Tremendous -- -- -- political anywhere yet let the let's get to that in the second but I just -- -- spend one more second on this idea.

Did you Durbin the senator the Democrat from on -- Illinois saying on TV they'd like to see 400 billion an entitlement cuts.

The -- vast majority of the savings -- perhaps all of that coming from Medicare.

Is that the right amount should be more should it be less.

Well it's gonna have to be more over time at least the Democrats are talking about something in Medicare it's the fastest growing part of the budget look 85%.

Of the federal budget is Medicare Medicaid Social Security defense and interest.

And the ones that are growing the most our Medicare Medicaid so now we have to do something to.

Stop the increase in that amount or it's gonna small the -- -- the budget it's going continue to run these huge deficits.

It's gonna take over our budget it's going to be the only thing we pay for and as you pointed out to us -- the centers for Medicare Medicaid Services found.

That we can't even get the fraud portion of this right and I know this is a topic you're very interested -- we've spent a 102 million trying to find fried.

And found twenty million -- -- What is wrong with the system here.

Well it's the bureaucrats you are implementing what is a good law what we did -- simply follow what the credit card industry does.

Many of your viewers have had transaction on their credit card -- the credit card company called and said.

Look there's a fraud alert on your card.

Did you really do that transaction what that is is computer.

Modeling predictive technology that looks at your fraud looks at your spending habits rather.

And -- whether they're in the normal course of your spending if they're not.

Date to computer puts up the red flag in the check with you and if you say no they don't pay.

So we took something that's working in the private sector a two trillion dollar credit card business that pays very little out in fraud stops the fraud before it starts to -- Let's apply that to Medicare right where they estimate is between Medicare Medicaid there's a hundred.

Billion dollars of year.

Of health care fraud.

And unfortunately the bureaucrats in Washington haven't implemented correctly gave out the -- to companies who don't have any experience in this area.

And we believe in outside groups said at the time that we could stop.

Up to twenty billion dollars a year in fraud by just implementing this law that was passed in the correct way.

That unfortunately gets nothing done it it's just astonishing to me.

How many ways you can mess this up and yet and yet President Obama says I've been working very hard it's happened Friday here's a president.

We went after medical fraud.

Then Medicare and Medicaid.

Very aggressively more aggressively than ever before.

And -- save tens of billions of dollars fifty billion dollars of -- taken out of the system.

Has the white house on a good job on us.

All they have and unfortunately in I don't know that the present even knows what's happening at C -- mass.

The fifty billion dollar number I don't know where he gets that number from -- never should have been.

-- government that now the government accounting offices said.

That debris -- they've only -- 7000 dollars in overpayments.

7000.

Dollars in overpayments after spending.

Tens of millions of dollars to implement this incorrectly.

-- where -- live here in South Florida we unfortunately are the health care fraud capital.

Of the country we have prosecutors doing a good job locking these people -- who stole millions sometimes.

Tens of millions of dollars but we don't get the money back the only way we're gonna solve this problem.

Is -- stop the fraud before it starts -- -- do you -- passion senator how do you know if they would.

If they implement this legislation so look somebody orders a hundred wheelchairs and an hour.

Does the computer will say that's out of the normal course.

The red flag goes up what has to happen then which is not happening now.

Is that when that provider.

-- in for reimbursement.

And normally Medicare they get paid very quickly sometimes within two weeks wow that payment can't be made until the red flag is checked out.

That's what the credit card companies do this isn't rocket science.

When the red flag goes up don't pay until you verify if they do that.

We will save tens of billions of dollars and put more money back in the Medicare which will make it more solvent.

Well.

You know goodness sakes you're here's -- suggesting that we adopt private sector ideas to a public -- sector says stabbed.

Senator thanks for coming -- it's a pleasure to talk to you you've got to come back against him appreciate your time but thanks so much should enjoy being on thank you.