Federal Medicaid dollars are spent by the states. The Health and Human Services Department requires states to have Medicaid Fraud Control Units that hunt for theft or patient abuse. And they do get results. Richard Stern is the director of the Division of Medicaid Fraud Policy and Oversight in the HHS inspector general’s office. He talked with Federal Drive with Tom Temin about their accomplishments in 2016.
Source: Richard Stern: Tracking down Medicaid fraud / Federal News Radio