Consultants to Fraud

In a report to the Senate Finance Commitee the GAO revealed that states are using consultants who work on a contingency fee basis to increase their Federal Medicaid reimbursements. One consultant received $82 million after helping Georgia increase its federal contribution by $1.5 billion. All hail the contingency fee! Enriching lawyers and scoundrels everywhere.

Don't get me wrong: Contingency fees aren't inherently bad. Without them, low income litigants might never file suit. That said, it's important to note that many countries limit their use or prohibit them all together. People probably work harder if they know their salary is contingent on performance. Or do they? Does a possible $82 million dollar payday make you work harder at your job -- or does it incite greed when you can't keep up?

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2 Comments

  • Arun Sadhashivan

    I know that it sounds obscene.. a payday of 82 million.. But here are a couple of things you might keep in mind..
    1) The state wouldn't have hired a consultant who wasn't worth that kind of money. So he would have had to be really really good.
    2) A guy or girl who makes that kind of money probably doesn't look at money the way the rest of us do. Money probably would not be the prime motivation for such a person. It's probably just a number to notch up on a board somewhere.

    I don't know if I'm completely right or completely wrong.. but hey, it's an opinion and this is a blog.

    Have a nice day..