The Odd Couple – GM & Medicare

Posted by: promera on: November 23, 2009

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For those of you that have been following along at home know that while I may only be in Kindergarten, I am very much concerned about the future of this country.

As we wind down 2009, just think about all of the turmoil, we, as a nation, have faced:

• The biggest financial crisis since The Great Depression  
• The complete implosion of the US-based auto-industry
• Ponzi Watch – Danny Pang, Mr. Madoff, Mr. Rothstein, Mr. Sanford
• Healthcare reform – well, you already know how I feel about that
• Continued unrest in the Middle-East (not to mention the Pirates in Somalia)

See what I mean?

When my dad was my age he only had to worry about The Cold War and a complete nuclear holocaust.  At least then you knew who the enemy was. Today, you are subject to terror-cells that can spring up anywhere.

It really does give you pause.

But, I’m an optimist and I thought I would tackle two very big domestic challenges all at one-time.

Since everyone reading this entry is technically a shareholder of GM (our $52 B investment gave us 61% ownership), I’m sure you are aware that while we (yeah, we – GM is now US) posted a +$1 B loss in Q3, our CEO Fritz Henderson is poised to accelerate the repayment of ~$7 B in emergency funds provided to GM – with $1 B being paid-back in December.

Meanwhile, down in Washington, DC – the land of the most efficient operators in the world, we find ourselves mired in debate over what to do with healthcare.

This debate has focused a significant amount of attention on our Medicare programs (the social insurance program administered by the US government providing health insurance for those 65 and over) that pay-out nearly one-half trillion (yes, that’s a T) in benefits per year.

Meet the odd couple and a viable solution to fixing both GM and Medicare at the same time.

It was recently reported (CLICK HERE) that the amount of fraud perpetrated against Medicare is $60B annually.

It has replaced drug-running as the #1 crime in South Florida, and evidently anyone with less than an 8th grade education can immediately start collecting from Medicare.

Why?

Well, my friends, those efficient operators in Washington, DC passed a law requiring that Medicare benefits reimbursements be paid within 15-days of receipt.  That means if you send Medicare a bill, you will be paid in about two weeks time.

Efficient?  Yes.  Smart?  Not so much.

You see, they MUST pay every invoice, it is in fact the law.  However, the geniuses that passed the law didn’t bother to uncover whether or not the Medicare A/P system had any capability to detect fraud.  You know, multiple vendors billing for the same person for items not related to their condition, not to mention that the person may actually now be deceased.

Enter GM.

Why bother selling cars when clearly there is money to be made in Medicare?  So, and follow along with me, why not have GM open up a bunch of store fronts all over the US and start billing Medicare for DME (durable medical equipment)?

Fraud?  Perhaps.

But, if GM can take over the lions-share of the $60B in annual fraud perpetrated against Medicare and then use these funds to fully repay the US Government – then . . . and drum roll please . . . we’ll have fully recouped our investment in GM.

Make sense, right?

Oh, probably as much sense as it makes to let the government increase their role in healthcare and, for that matter, anything business related.