Medicare’s Inspector General Under Investigation

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Medicare’s Inspector General Under Investigation

Efforts to crack down on waste, fraud, and abuse in Medicare have taken a highly unusual turn. The Inspector General of the Department of Health and Human Services (HHS), responsible for oversight of over $450 billion in annual government spending and investigating Medicare fraud, is under investigation.

Senator Charles Grassley (R-IA), as well as other members of the Senate and House, has asked General Accounting Office (GAO) to look into questions arising over the conduct of Inspector General Janet Rehnquist, daughter of Supreme Court Justice William Rehnquist. The allegations include questions over the “involuntary” re-assignment or retirement of 19 senior managers—including the departure of all six deputy inspector generals.

The President’s Council on Integrity and Efficiency, which is led by the F.B.I., is also looking into whether Ms. Rehnquist violated local laws by keeping an unauthorized gun in her office—complete with a target affixed to the wall.

If that wasn’t enough, Congress is investigating delays sought by Ms. Rehnquist in a federal audit of Florida’s pension fund. According to “The Associated Press,” Ms. Rehnquist ordered the delays at the request of Governor Jeb Bush. This ensured that the postponed review would not be completed before Governor Bush won re-election. “The Associated Press” reported in June 2002 that the Florida pension fund had lost about $300 million in Enron stock—more than any other state pension fund. The consumer organization, Public Citizen, claimed that Governor Bush “has strong ties to Enron and extensive entanglements that create a number of conflicts.”

By law, inspector generals are appointed by the President and confirmed by the Senate. Less than three months after taking over as Inspector General in 2001, as an appointee of President Bush, Ms. Rehnquist relaxed Medicare antifraud measures, including a modification to procedures that benefit health care providers who are operating under “corporate integrity agreements.” These agreements involve the settlement of improper payments and millions of dollars of the Medicare budget. Ms. Rehnquist’s modification reduces the amount of money providers have to pay Medicare.

Editor’s note: The White House recently announced that several thousand political appointees were eligible for cash bonuses up to $25,000. The decision abandons a 1994 prohibition that, according to “The New York Times,” “grew out of questionable practices in the first Bush Administration.” According to “The Washington Post,” about one-third of the eligible political appointees in the Department of Health and Human Services received bonuses. “The Advisor” is attempting to ascertain whether Ms. Rehnquist received such an award.

To read more on this see, “New Medicare Policy Likely to Hide Improper Payments” at http://www.tscl.org/NewContent/101679.asp.

Sources: “Chief Justice’s Daughter Lands in Hot Seat at H.H.S.,” Sarah Lueck, “The Wall Street Journal,” November 11, 2002. “Delay of Florida Audit Prompts Question of Political Intervention,” “The Associated Press,” November 26, 2002. “Investment Firm Answers Florida Pension Enron Lawsuit,” David Royse, “The Associated Press,” June 12, 2002. “Public Citizen Calls on Florida Governor to Recuse Himself From Pension Fund Investigations,” Public Citizen, February 8, 2002. “CIA Modifications Relax Review Procedures, Apply to Some Current Provider Agreements,” The Bureau of National Affairs, November 28, 2001. “Bush Restoring Cash Bonuses for Political Appointees,” Eric Lichtblau, “The New York Times,” December 4, 2002. “Appointees’ Bonuses Stir Anger,” Christopher Lee and Mike Allen, “The Washington Post,” December 5, 2002.

For a related story see, “Legislative Update: Government Wasted $19 Billion in 2001” at http://www.tscl.org/NewContent/101724.asp.

March 2003