Doctors, Defense Contractors Cheated on their Taxes

In a truly embarrassing debacle, the Government Accountability Office released its official findings regarding persons who both cheat on their taxes and do business with the government. In particular, the November 14th report shined the spotlight on more than 30,000 Medicaid providers who didn’t pay their taxes. How much did they neglect to pay? About $1 billion.

Even more disturbing were findings that the worst violators lived extremely lavish lifestyles, and had abused patients or violated other health care policies. Some even decorated their mansions with chandeliers and fine furnishings while their clinics and nursing homes verged on neglect.

The tax-evading Medicaid providers were spread over seven states, from New York to Texas, Florida to California. The Government Accountability Office found that 5% of Medicaid providers in those states had cheated on their taxes. Also guilty were defense contractors, who owe about $78 million in taxes.

Of course, these health care professionals and contractors are only responsible for a tiny part of the $400 billion or so that has gone uncollected each year since 2003. Where are the inspectors when you need them? It’s been suggested that the president has them on a short leash; but that’s another story entirely.