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Public Statements

MLR and Fraud

Floor Speech

Location: Unknown

Mr. PITTS. Yesterday, we had an Energy and Commerce Health Subcommittee hearing on how we can combat waste, fraud, and abuse in our health care system. We heard from private sector representatives about some of the innovative ways that they prevent fraud before it happens. At the same time, Medicare loses billions of dollars annually because most fraud is only discovered after it has been perpetrated.

Now, under ObamaCare, we have a new medical loss ratio rule, or MLR, that may actually create perverse incentives for private insurers to behave like Medicare. Some have suggested that the consumer protections provided by the MLR rule are too important to subject the rule to change in order to prevent fraud. Setting aside whether individuals or employers have received the benefit of the MLR rule, clearly the best way to save money is prevent it from being stolen in the first place, not chasing criminals after they have received and spent their illicit gains.

The flawed MLR rule is just another example of how ObamaCare's sloppy legislating and rulemaking has the potential to cost the American people dearly.

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