In a bold move aimed at improving healthcare affordability, the Trump Administration has announced a major crackdown on healthcare fraud. What this really means is a concerted effort to root out waste, abuse, and criminal activity that drives up costs for consumers and the government. As Reuters reports, the Department of Health and Human Services (HHS) recovered nearly $2 billion from healthcare fraud cases in 2019 alone.
Tackling the Root Causes of High Costs
The bigger picture here is that the administration is taking aim at one of the key drivers of the country's healthcare affordability crisis. BBC analysis has shown that fraud, waste, and abuse account for as much as 25% of total US healthcare spending, which reached $3.6 trillion in 2018. By cracking down on these illicit activities, the hope is to redirect those funds towards lowering premiums, deductibles, and out-of-pocket costs for American families.
According to the HHS announcement, the new anti-fraud initiatives will involve a multi-pronged approach:
- Increased data sharing and coordination between federal agencies to identify and prosecute complex fraud schemes
- Tighter controls and screening for healthcare providers to keep bad actors out of federal programs
- Expanded use of advanced data analytics to detect suspicious billing patterns in real-time
Implications for Consumers
The ultimate goal, of course, is to make healthcare more affordable and accessible for all Americans. As our earlier coverage explored, the rising costs of care have priced many families out of the market, leading to a growing crisis of the uninsured. By cracking down on fraud, the administration hopes to free up resources that can be redirected towards lowering premiums, deductibles, and out-of-pocket maximums.
As this report notes, the implications of this policy shift could be far-reaching. If successful, it could help make quality healthcare more attainable for millions of Americans who have struggled to afford coverage in recent years.