NCJ Number
91989
Date Published
1982
Length
235 pages
Annotation
Witnesses from the Postal Service, the Ohio State Government, senior citizens organizations, and insurance companies testified on medical frauds perpetrated through the mails and insurance promotions.
Abstract
A postal inspector highlighted that agency's investigations of fraudulent cures, age-retarding substances, insurance, and diet plans targeted at the elderly, as well as mail order sales of drugs to teenagers. A representative of the Arthritis Foundation described quack and unproven remedies sold for arthritis. The next two witnesses, a senior citizen and a project director of the United Labor Agency, protested the gigantic ripoff of older Americans in the insurance field, particularly supplemental Medicare or Medigap insurance. The Ohio Department of Insurance's deputy director discussed that State's compliance with Public Law 95-265 and its rates and policy form approval process. Committee members commented that this agency appeared more concerned with preserving the insurance industry than protecting consumers. The Attorney General's Office disagreed with the Department of Insurance, contending that Ohio's insurance industry has serious fraud, abuse, and cost problems and that State regulation has been inadequate. A panel of witnesses from senior citizens groups in Ohio focused on rate increases and benefits from Medical Mutual in Cleveland and Blue Cross and Blue Shield insurance. Representatives from the insurance industry countered attacks against their supplemental Medicare policies, outlined reasons for premium increases, and explored problems in insuring a high-risk population like the elderly. Physicians explained the role of health maintenance organizations in elderly medical care and programs of the Northeastern Ohio University's College of Medicine. Prepared statements of witnesses and materials supporting the testimony are supplied.