Extending the Solvency of Medicare by Preventing Medicare Fraud

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Defend Liberty LLC President Joe G. Rodriguez announced the establishment of their new website and highlighted a plan to prevent a type of Medicare Fraud that has existed since the Medicare System was established in 1965.

Defend Liberty LLC President Joe G. Rodriguez announced the establishment of their new website and highlighted a plan to address an important issue affecting the solvency of Medicare. The purpose of the announcement is to inform citizens and government officials on how to extend the solvency of Medicare and thereby saving of billions of dollars.

HealthReform.gov reports “The growth in Medicare spending is unsustainable. In fact, the Medicare Hospital Insurance Trust Fund, which pays for Medicare Part A, is now projected to be exhausted in 8 years, sometime during 2017.”

In addition, “The National Health Care Anti-Fraud Association (NHCAA) estimates conservatively that 3% of all health care spending - or $68 billion - is lost to health care fraud.”

Mr. Rodriguez discovered a “design flaw” in the Medicare System because of his extensive experience in the Information Technology Industry plus his experience using Medicare the past 4-years.

The “design flaw” is the result of Medicare using the Social Security number like a credit card number to make payments to healthcare providers. The Social Security number is used in all types of transactions such as mortgages, bank accounts, credit card accounts, loans, tax returns, etc. Since the Social Security number is used in all types of transactions, finding the source where the information was misappropriated becomes very difficult and expensive.

Mr. Rodriguez is proposing a short-term and long-term solution to prevent Medicare Fraud by illegal healthcare providers who obtain and use a person’s identity to bill for fraudulent services.

The short-term solution is to add a pin number to the Social Security number on the Medicare card. The pin number would essentially eliminate the use of all stolen names and Social Security numbers. Without the proper pin number, charges could be rejected immediately. This short-term solution could be implemented within 90-days thereby saving billions of dollars.

The long-term solution is to have each Medicare recipient use a Medicare Payment Card similar to a credit card that does not use the Social Security number and upgrade the Medicare system to provide timely reporting of Medicare charges. Currently, the Centers for Medicare & Medicaid Services (CMS) report charges paid every 3 months. The lag time between charges submitted to CMS and Medicare recipient awareness of fraudulent billing provides the opportunity for fraudulent healthcare providers to pack up and move on.

CMS should adopt the same practices as major credit card companies who post new charges online within 24-hours and provide monthly statements to their customers. In addition it is not unusual for credit card companies to contact the credit card holder of suspicious charges immediately.    

Both the Pin Number and Medicare Payment card would also help to find the source where the information was misappropriated. This information could be provided to law enforcement officials in a timely manner helping to apprehend those trying to commit Medicare fraud.

At this critical time of budget deficits and escalating costs to Medicare, finding solutions to Medicare fraud is an important step towards keeping the promise to senior citizens and fairly compensating healthcare providers for their services.

About Defend Liberty LLC
The United States of America is facing many challenges which threaten the security and liberty of all Americans. During numerous workshops and seminars, it became apparent citizens wanted to learn how to solve problems and get more control of their future. Defend Liberty LLC was formed in Colorado by a group of concerned citizens to focus on solving problems.


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Joe G. Rodriguez
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