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AARP Endorses Bipartisan Legislation to Fight Fraud in Medicare


September 21, 2010

Contact: AARP Media Relations,, 202-434-2560


AARP Endorses Bipartisan Legislation to Fight Fraud in Medicare

Bill from Reps. Stark, Herger would crack down on criminal executives.

WASHINGTON—AARP Senior Vice President David Sloane today sent a letter to Representatives Pete Stark (D-CA) and Wally Herger (R-CA) announcing AARP’s endorsement of H.R. 6130, the Strengthening Medicare Anti-Fraud Measures Act.  The bill, introduced by Reps. Stark and Herger, would give the U.S. Health and Human Services Office of Inspector General (OIG) the authority to close current loopholes by holding fraudsters accountable across complex corporate structures and any subsequent positions in other provider companies.  Sloane’s letter follows:


September 21, 2010

Dear Chairman Stark and Ranking Member Herger:

AARP is pleased to endorse the Strengthening Medicare Anti-fraud Measures Act (H.R. 6130).  This important measure would expand the authority of the United States Health and Human Services Office of Inspector General (OIG) to significantly reduce fraud and thereby increase the long-term sustainability of the Medicare program by ensuring that funds go to services that beneficiaries need.

H.R. 6130 eliminates two unintentional loopholes in the current law.  First, businesses that engage in fraud often set up shell companies to insulate themselves from liability with the result that criminal settlement negotiations can dissolve these shell organizations with no real penalty to the parent company.  Under H.R. 6130, OIG can now exclude not only the shell companies but also the parent companies from the Medicare program.  Second, under current law, an executive at a company convicted of fraud can move to a different position at a different company and contract anew with Medicare.  This legislation would change that by giving OIG the authority to ban not just a particular company but also the culpable executives from doing business with Medicare in the future, even if they move to a different company.

We thank you for your leadership on efforts to eliminate fraud in Medicare, and we look forward to working with you to enact the Strengthening Medicare Anti-fraud Measures Act. 


David P. Sloane

Senior Vice President

Government Relations and Advocacy

For a copy of the letter, please contact AARP media relations at (202) 434-2560 or 

AARP is a nonprofit, nonpartisan social welfare organization with a membership that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world's largest-circulation magazine with over 35.1 million readers; AARP Bulletin, the go-to news source for AARP's millions of members and Americans 50+; AARP VIVA, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

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