IN 1965, the Medicaid and Medicare programs were created in order to provide structured government mechanisms that would provide healthcare to the poor and elderly. Medicaid exists at the state level to provide healthcare to those who are unable to afford it. In all, over 36 million individuals receive healthcare through Medicaid. Medicare exists at the federal level to provide healthcare primarily to those 65 years of age and above, but also to vulnerable adults. Medicare is divided into Part A (providing hospital insurance) and Part B (providing medical insurance). Over 39 million individuals receive healthcare through Medicare.

When first created, there were no provisions for guarding against abusive activities, primarily because no one thought providers would defraud the healthcare systems. About 10 years after the ...

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