It is not just fraud and illegal activity that is the problem—perfectly legal transactions are a bigger problem.
I use a wheelchair and via Medicare the chair would cost about $6,000. after a 20% deductible my share would be about $1,200. I can buy the same chair directly and pay about $1.300. Considering the trouble one goes through with a medicare clam it is a no-brainer for me. The markup on DME is through the roof.
I understand what you are saying, believe me. But, the reason there is such inflation is precisely because of the government rules that are bizarre, extremely convoluted and unintelligible when one tries to read them.
When the government inserts itself, there is no longer a free market and there are costs associated with the bureaucracy. As such, reverting to a more free market would probably do what my economics professor always taught me competition does -> downward pressure on prices.
Its pretty simple...
Same goes with my catheters.$2 each, $.55 each After Medicare. Direct purchase is $.62 each, FREE SHIPPING! What a great racket! $1.34 per of PURE FAT!