As per reports, it has been revealed that the government has been paying a number of Medicaid health care service providers irrespective of the fact that the service providers also owe million dollars of funds to the government in the form of taxes.

Till now, three states have been checked New York, Texas and Florida, so it could not be known that how much loss the government is incurring due to service providers. However, the Government Accountability Office has issued a statement that Medicaid payments cannot be equated as federal funds, so not action can be taken against them.

This statement has made the IRS to sit quietly, as otherwise they would have taken some action against those providers. The IRS revealed about one dentist, who was being paid more than $100,000 from the Medicaid. In return, he owed a huge amount of income tax to the government, but he was spending the amount being given to him while having dinners, luxury shopping and trips.

Republican Senator Tom Coburn was of the view, "People who cheat on their taxes show a clear disregard for the law, so they might be more likely to defraud Medicaid, or even harm patients”. It seems that stern action needs to be taken on the same.