Massive TennCare Fraud
Tennessee politicians have told taxpayers for years that fraud is not a major problem with TennCare, the state's mutated Medicaid program. After you read this story in today's Jackson Sun, you'll know not to believe them. The story reports on the federal charges filed against two men in a $650K fraud case involving TennCare -though, strangely, the story never calls the program by that name. Instead, the paper refers to TennCare only generically as the state's "Medicaid Waiver" program. But that's TennCare - the state has a federal waiver to operate its Medicaid program differently than other states. The two men face multiple federal charges in connection with an alleged money laundering and Medicaid fraud scheme that netted more than $650,000.

Cedric R. Deadmon, 36, was charged by a federal grand jury on Wednesday for establishing a non-existing company along with Isaac J. Williams, 39, of Nashville, that sought out state contracts through the Department of Finance Administration and Division of Mental Retardation Services. They then allegedly obtained monies through the state's Medicaid Waiver program by submitting false and fraudulent billings. The indictment is based on activities beginning in 1997 until May 1999.

The men allegedly received $650,342.62 from the state, getting "large checks" from the state between December 1998 and April 1999. The case was investigated by the Internal Revenue Service and the Tennessee Bureau of Investigation.

Perhaps if the Sundquist administartion had cracked down on TennCare fraud, this massive theft of taxpayer money would have been prevented. Oh well. At least the Bredesen administration is working seriously on TennCare reform.

UPDATE: A Bredesen administration official may be floating a trial balloon about possibly scrapping TennCare.