Stopping Medicaid Abuse

The Iowa Senate Labor Committee has sent SF 334, a bill providing additional oversight of Medicaid and other public assistance programs, to the Senate floor.

Senator Jason Schultz said, “Iowa taxpayers should be defended. Not simply: ‘Oh, you don’t qualify anymore,’ but no, we’re actually going to go and look for people who are taking your money and using it incorrectly.”

Nearly one out of five Iowans receive Medicaid benefits, and it is the second largest budget driver for Iowa. Regular audits are needed to protect taxpayer dollars and ensure benefits are applied only to those who truly need the services.

Other states that have implemented Medicaid recipient audits found considerable fraud. Louisiana, for example, randomly checked 100 Medicaid recipients and discovered that 82 of them no longer qualified for benefits. Arkansas removed 25,000 receiving benefits in multiple states.

When fraud occurs in any public assistance program, it not only hurts those who truly need the services, but it fleeces the taxpayers.

This bill is eligible for debate on Tuesday in the Senate.

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