March 01, 2005
Trust the Toad

Editorial (pdf file) from the Journal of American Physicians and Surgeons discusses two GAO reports from 2002 and 2004 that found that 96% of simple Medicare billing questions posed to Medicare customer service reps (CSRs) were answered incorrectly.

The author, a Dr. Huntoon, decided to pose several "yes/no" Medicare questions to a local toad (the hopping kind). The toad jumped right to indicate "yes" or left to indicate "no." Evidently the toad answered the questions "correctly" 50% of the time.

If Dr. Huntoon's interpretation of the GAO report is correct (I haven't been able to track it down yet), then 96% of Medicare claims that were completed with the help of Medicare CSRs were incorrect. The lesson seems to be that doctors should bill Medicare in a random fashion as the odds that a claim will be repaid seem a bit higher. On the other hand, the 4% of claims correctly filled out with the help of CSRs might have been big ticket items, thereby making the expected value of the CSR-assisted claim higher than the toad-assisted claim.

Nevertheless, I would trust the toad.

One great paragraph from the editorial:


Consider what would happen if your local fast-food restaurant got the orders wrong 96 percent of the time. The customer oriented free market would never tolerate such poor performance. The anti-free-market Medicare bureaucracy, however, is neither accountable to its "beneficiary/ customers," nor to its slave "providers." Thus, the Medicare bureaucracy not only tolerates poor performance, but judging from the way it monitors performance, it considers accuracy and competence irrelevant.

Amen, brother.

Posted by Craig Depken at 12:28 PM

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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