Feds ignored Medicare scam warnings for years

For three years, the federal agency in charge of preventing Medicare fraud repeatedly ignored internal watchdog warnings about swindlers stealing millions of dollars by scamming several programs, documents show.

The Centers for Medicare and Medicaid Services received roughly 30 warnings from inspectors over three years - mostly under the Bush administration - but didn't respond to half of them, even after repeated letters, according to records provided to The Associated Press by U.S. Sen. Charles Grassley's office.

A July 2008 warning said organized crime had infiltrated the system and was costing more than $1 million dollars for each phony Medicare provider license the crooks obtained. The letter got no response, Grassley said.

He and other critics said lack of oversight in the federally administered program is part of an estimated $60 billion a year in Medicare fraud.