FOR IMMEDIATE RELEASE	DAG

FRIDAY, APRIL 24, 1998                                                                                                                                  (202) 616-2765

                                                                                                                                                                                 TDD (202) 514-1888




Statement of Eric H. Holder, Jr.


Deputy Attorney General


on the


Release of the HHS-Inspector General's Audit for FY 1997





Today's report by the HHS Inspector General demonstrates the
serious and continuing threat that fraud and abuse pose to the
Medicare Trust Fund.  Fighting health care fraud and abuse is one
of the Department's highest priorities, and last year DOJ
prosecutors obtained more criminal convictions and civil
settlements and judgments than ever before.  Through these efforts,
and in cooperation with the HHS Office of Inspector General and
others, we were able to return almost $1 billion in criminal fines
and civil and administrative remedies to the Medicare Trust Fund.




	The modest decrease in total improper payments (which include
everything from inadequate documentation to potential  fraud) from
$23 billion in 1996 to $20.3 billion in 1997 is a step in the right
direction.  However, in 1997 U.S. taxpayers lost the equivalent of
more than $500 in improper payments for every one of the 38.5
million beneficiaries in the Medicare program.  Through vigorous
enforcement of federal law, we plan to continue the Department's
aggressive effort to root out fraud and abuse from the Medicare
program.




	The HHS Inspector General's report makes clear that now is not
the time to retreat from our current efforts or to weaken the tools
we use to combat fraud and return funds to the Medicare Trust Fund. 
The Department's health care fraud program is a balanced one.  We
are committed to the tough but fair enforcement of federal civil
and criminal laws, while also emphasizing the need to work in
partnership with health care providers to promote compliance within
the industry.  We have no interest in punishing honest billing
mistakes or other inadvertent billing errors.  We must continue
this approach as we seek to root out fraud and abuse from the
Medicare Trust Fund.




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