30,000 Medicaid providers cheating on their taxes

November 19, 2007
30,000 Medicaid providers cheating on their taxes

More than 30,000 Medicaid providers in seven states - California, Colorado, Florida, Maryland, New York, Pennsylvania and Texas - failed to pay more than $1 billion in federal taxes last year, according to a report released Nov. 14.

In its fifth report to a Senate panel investigating tax cheats that do business with the government, the Government Accountability Office (GAO) says 5 percent of Medicaid providers in the seven states cheat on their taxes - particularly payroll taxes collected from employers.