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EU Commission: Corruption Across EU Costs €120 Billion
cold fjord writes with news that the EU has completed its first report on corruption in member states, and the results aren't looking too good. From the article: "'The extent of corruption in Europe is 'breathtaking' and it costs the EU economy at least 120bn euros (£99bn) annually, the European Commission says. EU Home Affairs Commissioner Cecilia Malmstroem has presented a full report on the problem. She said the true cost of corruption was 'probably much higher' than € 120bn. Three-quarters of Europeans surveyed for the Commission study said that corruption was widespread, and more than half said the level had increased. 'The extent of the problem in Europe is breathtaking, although Sweden is among the countries with the least problems,' Ms Malmstroem wrote in Sweden's Goeteborgs-Posten daily. The cost to the EU economy is equivalent to the bloc's annual budget. For the report the Commission studied corruption in all 28 EU member states. The Commission says it is the first time it has done such a survey. "
Hello? The least corrupt countries (Denmark, Finland, Luxembourg and Sweden) are the ones with the largest welfare systems.
1. Estimates of just medicare/medicaid fraud in the US easily approach $100 billion. I'd bet those estimates are conservative.
According to that link, the GAO estimated $48 billion in "improper payments." I suppose that's "approaching" $100 billion, if you are free to take any number and double it.
The GAO didn't say "fraud," they said "improper payments." Big difference.
The author of that article said that Medicare fraud is 10%, but private insurance fraud is only 1.5%. Funny thing, he used to work for the Council for Affordable Health Insurance, which is a private insurance industry lobbyist.
I went to a doctor about a bad knee. He gave me an x-ray, and billed the insurance company
$1,000. When I got home, I read a medical journal article about my knee problem. They said that x-rays aren't necessary. I wonder how much the private insurance industry loses to fraud. I'd like a calculation made by somebody who isn't a lobbyist for the private insurance industry.