“Fraud in Psychiatry Is Alive and Well”
In September 1993, the U.S. General Accounting Office cautioned that because of “increased scrutiny by insurance companies” and other factors, Medicaid and other government funding sources would become the primary targets of psychiatric fraud. That warning came too late. Psychiatrists and psychiatric institutions had already bilked Medicaid by means of a new scheme. Their target: Medicaid’s Early and Periodic Screening, Diagnosis and Treatment Comprehensive Care Program. Designed to pay for early detection and treatment of medical and dental problems, Medicaid had expanded this program to provide mental health coverage in April 1992. Hundreds of children including 205 boys and girls between the ages of one and five in Texas alone suddenly became “mentally ill” and were placed in psychiatric institutions at a cost of $800 a day. Payments to private psychiatric institutions in Texas soared from $342,291 in April 1992 to $2,332,127 in August 1992. After Medicaid clamped down on the bogus admissions and new state laws went into effect in September 1993, the amount dropped to a trickle: $1,467 per month. A number of the psychiatric hospitals involved recently paid settlements to Texas after defrauding the Crime Victims Compensation Fund established to aid victims of crime. A similar situation was also reported in Oklahoma.
Psychiatry’s $40,000,000,000 Fraud continued... | Previous | Glossary of Scientology Terms | Contents | Next |
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