Every day, you must prove your identity countless times through various security measures. So why isn’t this required for significant government welfare spending? Implementing identity verification in welfare programs could save taxpayers nearly $30 billion over the next decade. Fraud prevention must extend to welfare.
During the COVID pandemic, fraudsters stole around $400 billion from government spending. Currently, fraudulent use consumes at least 10 cents of every food stamp dollar and more than 20 cents per Medicaid dollar. Projecting over ten years, Medicaid fraud might surpass $2 trillion.
Federal rules rarely mandate identity checks for Medicaid applicants, except in certain citizenship scenarios. The Trump administration spearheaded efforts to combat fraud through criminal crackdowns, a White House task force, and financial repercussions for non-compliant states like Minnesota and California. This departure from previous policies, which emphasized self-attestation, marked a significant change.
Fraud cases have exploited systemic weaknesses. A scheme in Illinois billed $75 million in false Medicaid claims for non-existent treatment services. Purchased luxury items included cars and real estate, highlighting how fraudsters manipulate these programs. Another scheme defrauded $67 million for unrendered behavioral health services. In New York, a Medicaid fraud operation yielded $35 million for fake ambulatory services.
Audits reveal how simple it is for scammers to target taxpayer money. The USDA’s audit of food stamp distribution highlighted duplicated and fraudulent benefits, with nearly 250,000 duplicate recipients and 185,000 deceased persons receiving payouts. Dummy Social Security numbers accounted for over 440,000 fraudulent claims. Meanwhile, the GAO tested HealthCare.gov and found widespread fraud, with 19 out of 20 fictitious applications getting approval.
Identity theft affects one in five Americans. However, allowing fraud to persist until detection isn’t the answer. Every other aspect of life involves rigorous identity verification, yet welfare systems lag behind. It’s time that welfare applicants must verify identities, protecting the taxpayers’ money.