Report: Providers Collect Medicare Payments While Owing $2 Billion

Washington, D.C. (AHN) - Over 27,000 hospitals, nursing homes and doctors collected Medicare payments even as they collectively owed the Internal Revenue Service more than $2 billion in unpaid taxes, a Government Accountability Office report has found.

The report pointed out that some of those who owed the government back taxes live a life of luxury as proven by their ownership of million-dollar homes and luxury vehicles.

Other health care homes got Medicare payments despite poor quality of care cases, including one provider that could no longer track a patient under their care.

The tax delinquents comprised 6 percent of Medicare providers.

Sen. Carl Levin, chairman of the Senate Permanent Subcommittee on Investigations, which initiated the investigation, said, according to USA Today, "These tax deadbeats are guilty of shortchanging the government and forcing honest American citizens to shoulder the taxes they are shirking."

The 27,000 tax cheats got $402 million in Medicare payments in 2006. They were not identified by name in the GAO report.

In a statement, Levin said, "It ought to be obvious that folks who make their living off taxpayer dollars have a special obligation to pay their taxes."