Health care fraud crackdown is the major part of any health care overhaul - HHS nominee told the senate committee
01 04 09 - 11:30
HHS nominee calls for health care fraud crackdown
By RICARDO ALONSO-ZALDIVAR Associated Press Writer © 2009 The Associated Press
WASHINGTON — Saying she'd be a tough enforcer, President Barack Obama's choice to head the Health and Human Services Department on Tuesday called for a crackdown on medical fraud as part of any health care overhaul.
"Having a few strike operations may be the most effective way to send the signal that there's a new sheriff in town, and I intend to take this very, very seriously," Kansas Gov. Kathleen Sebelius told the Senate Health, Education, Labor and Pensions Committee.
Sebelius also said she is concerned that efforts to control health care costs may ultimately prompt attempts to ration care, which she would oppose.
As the Democratic governor of a politically conservative state, Sebelius sought to portray herself as a leader who can work with both parties to craft health care reform legislation that would win broad support. Indeed, her comments on fraud and rationing echoed the concerns of committee Republicans.
Fraud is estimated to siphon off about 10 percent of what taxpayers spend for health care programs such as Medicare and Medicaid, accounting for more than $70 billion a year in losses. The schemes range from sophisticated efforts to market prescription drugs for unapproved uses to fly-by-night operations that peddle power wheelchairs to seniors who don't need them.
Sen. Tom Coburn, R-Okla., suggested the Obama administration needs to stanch the losses before it asks taxpayers for more money to cover the uninsured. Responded Sebelius: "I certainly think that a significantly more aggressive effort to go after fraud and abuse is well-deserved."
On the issue of rationing, Sebelius parried questions from Sen. Pat Roberts, R-Kan., about effectiveness research for which the administration has allocated $1.1 billion. She disagreed that such research — which compares the benefits of treatments, tests and medications — might lead to rationing. But she said she is concerned about efforts to ration care to control soaring costs, adding that she had battled insurers over that when she served as a state insurance commissioner.
"I have some experience in fighting for the fact that providers should make medical decisions," Sebelius said. "That's one of the reasons we have people who go to medical school."
Her 2 1/2-hour hearing was mostly low key. Sebelius has faced opposition from conservatives over her support for abortion rights, but senators didn't raise that issue Tuesday.
Sebelius likely will face tougher questions Thursday when she appears before the Senate Finance Committee, which must endorse her nomination before the full Senate votes on confirmation.
In addition to possible questions on abortion, Sebelius could be asked about having recently corrected three years worth of tax returns and paying $7,040 in back taxes. She alerted senators to what she called "unintentional errors" in a letter dated Tuesday.
During the Senate health committee hearing Tuesday, Sebelius said she supports Obama's plan to offer the option of a government-run health plan, but said that does not mean she wants Washington to take over the system.
If confirmed, "health reform would be my mission," Sebelius pledged.
"Inaction is not an option. The status quo is unacceptable, and unsustainable," she said, adding that high health care costs are hurting families and crippling the economy.
Sebelius was welcomed by Sen. Edward M. Kennedy, D-Mass., who is being treated for brain cancer. His hands shaking slightly, Kennedy said that over the past 10 months, he has experienced the health care system up close. "I've benefited from the best of medicine. But we have too many uninsured Americans," said the committee chairman.
Toward the end of the hearing, Kennedy asked Sebelius to affirm her support for cancer research. She did.
Sebelius was introduced by former Sen. Bob Dole of Kansas, the one-time Senate Republican leader and 1996 presidential nominee. Dole echoed Sebelius' call for quick action to overhaul the health system and praised her as a bipartisan leader who could pull it off. He sat next to her at the witness table for most of the hearing.
Sebelius is Obama's second pick to head the department. Former Senate Democratic leader Tom Daschle withdrew from consideration after apologizing for failing to pay $140,000 in taxes and interest.
The health committee won't actually vote on sending Sebelius' nomination to the full Senate. That job falls to the Senate Finance Committee, which will hold a confirmation hearing Thursday.
Associated Press writer Erica Werner contributed to this report.