Of course people will try to defraud. You may not have noticed the
previous email where I agreed that vigorous oversight and fraud
prevention needs to be part of any system. However, under a system
where payments are going to a doctor and not to a patient, there isn't
a great deal of motivation on the part of the patient to defraud the
system. That is one of the big differences between health insurance
and other forms of insurance. There is still very much a motivation on
the part of doctors to defraud the system though and that is the area
in need of greatest oversight. An interesting thing there, though, is
that the risk reward ratio changes for fraud if you move to a single
payer. If a large portion of your income is coming through one place
and you don't get to do business with that company anymore if they
find out about fraud, then the risk/reward changes significantly.

Judah

On Mon, Feb 16, 2009 at 2:14 PM, Scott Stroz <[email protected]> wrote:
>
> And I am sure no one has ever tried to defraud an insurance company, so all
> the balme has to be borne by them, right?

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