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Medicaid Abuses / Congress / Chicago #41737

ABC Evening News for Monday, Feb 16, 1976
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(Studio) Senate committee on aging told that Medicaid payments kicked back to doctors Committee studies medical laboratory fraud.
REPORTER: Harry Reasoner

(DC) Kickbacks estimated at $45 million. [Assoc. committee council Val HALAMANDARIS tells how private Medicaid patients overcharged.] Illinois investigators show charts of Chicago overcharges. 1 lab charged $15 for test not performed. [New Jersey investigations commissioner Frank HOLSTEIN - says lab test was performed free of charge for Parke Med. Lab by New Jersey department of health.] There's lack of state and federal control over Medicaid payments.
REPORTER: - Frank Tomlinson

(Chicago, Illinois) [Director Illinois department public aid James TRAINOR - knows there are abuses but reported figures are wild. Estimate $10's of millions in abuse.] 9 lab names listed. [TRAINOR - says program grew a lot between 1970-73. People didn't think about policing Medicare until end of `73 and `74.] Trainor says 17 doctors and 4 clinical labs suspended; but suspensions occurred after press revealed fraud.
REPORTER: Betsy Aaron

Aaron, Betsy;
Reasoner, Harry;
Tomlinson, - Frank

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