Massive Medicaid Fraud Exposed: PsychRights Calls on Members of Congress for Assistance


May 6, 2009

Jim Gottstein

In letters to Senators Charles Grassley and Herb Kohl, and Representatives Henry Waxman, Bart Stupak, John Dingell & Barney Frank, the Law Project for Psychiatric Rights (PsychRights) has exposed massive Medicaid Fraud. While working on PsychRights v. Alaska, its lawsuit to prohibit the State of Alaska from the largely ineffective and always harmful psychiatric drugging of children and youth, PsychRights “discovered that it is illegal for the vast bulk of these prescriptions to be reimbursed by Medicaid.”

Extrapolating from Alaska Medicaid Claims, PsychRights calculates over $2 Billion in fraudulent claims are being paid nationally every year for drug treatments Congress has explicitly prohibited, and it is probably well over $4.5 Billion, based on the total amount paid by Medicaid. Stating the carnage caused by the practice will be “recognized as the largest iatrogenic (doctor caused) public health disaster in history,” PsychRights analogized the situation, “to our current economic debacle caused by unrestrained Wall Street greed,” but noted, it is much worse, ” because children’s and youth’s future, health, and even lives, have been sacrificed and continue to be sacrificed on the altar of corporate profits.”

Also, “because most current child psychiatrists no longer know how to help children and youth without resort to the drugs” PsychRights suggests “the savings be used to fund approaches that have been proven to be safe and effective.”

The Law Project for Psychiatric Rights is a public interest law firm devoted to the defense of people facing the horrors of forced psychiatric drugging and electroshock. PsychRights is further dedicated to exposing the truth about psychiatric interventions and the courts being misled into ordering people subjected to these brain and body damaging drugs against their will. Extensive information about these dangers, and about the tragic damage caused by electroshock, is available on the PsychRights web site.

Gianna’s note:  I think we can assume this is happening nation wide!

3 thoughts on “Massive Medicaid Fraud Exposed: PsychRights Calls on Members of Congress for Assistance

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  1. Wow, this is HUGE. But, I fear that under the current administration (love Obama but I don’t think he gets the psych survivor thing, nor did Bush Jr, Clinton, or Bush Sr, though), the APA will win this fight in the end… and we all know what side they’re on. Also, they’re in San Francisco next week– should I drop in to give ’em a piece of my mind?

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