The Nation - News from April 9, 1989

Return of billions of dollars in paid Medicare claims is being sought by the Health and Human Services and Justice departments. A spokesman for HHS Inspector General Richard P. Kusserow told the Washington Post that in many cases the law clearly makes private insurance companies liable for payment of patient claims for a number of employed persons over 65; but often the companies failed to pay bills, leaving them to Medicare. Louis B. Hays, acting administrator of Medicare, told the Post that underpayments over the last six years by private insurance companies may total several billion dollars.