Despite tax debts, Medicare still pays
Quick View. July 28, 2008.
| Tax owed |
Amount |
Percent |
| Payroll |
$896 million |
44% |
| Individual income |
$581 million |
29% |
| Other |
$540 million |
27% |
Medicare participating entities -- including some doctors -- owe a total of more than $2 billion in taxes.
More than 27,000 physicians, hospitals, nursing homes and home health agencies receiving Medicare payments in 2006 -- 6% of approximately 436,000 Medicare billing entities -- had more than $2 billion in federal tax debts, says a June report by the Government Accountability Office. The Centers for Medicare & Medicaid Services noted in its formal response that in October, it will extend to fee-for-service Medicare a program by which tax delinquents' payments are docked. But time is running out: The government generally can't collect unpaid tax debt after 10 years.
Source: "Thousands of Medicare Providers Abuse the Federal Tax System," Government Accountability Office, June (www.gao.gov/highlights/d08618high.pdf )
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Copyright 2008 American Medical Association. All rights reserved.
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