What, Medicaid Fraud in Virginia?

A couple of days ago I caught some flak for daring to suggest that some Virginians drawing public benefits might be committing fraud — failing to report under-the-table income in order to qualify for food snaps, Medicaid, rental assistance or whatever. How beastly of me to cast such aspersions! What proof did I have? (See “Poverty Does Not Mean Destitution.”)

Heh! The timing couldn’t be better. James O’Keefe, the conservative investigator of ACORN-busting fame, has released a video of one of his accomplices posing as a Russian drug dealer filing for Medicaid benefits for his sister and father. When he asked if he would get in trouble for reporting income from his illegal drug and prostitution businesses, he was instructed, “Just leave that off your application.”

The fact that an undercover investigator with a preposterous story is given license to cheat doesn’t prove that other people cheat. But the incident certainly does raise issues about how effectively the Medicaid eligibility rules are enforced. Do Medicaid case workers see themselves as advocates for applicants, or as stewards of the taxpayer’s dollar? In this one case, at least, the answer is very clear.