OIG ordered to investigate Scully, CMS

Sunday, March 21, 2004

March 22, 2004

WASHINGTON - HHS Secretary Tommy Thompson last week ordered the OIG to investigate claims made by Richard Foster, CMS' chief actuary, that he was told by former CMS Administrator Tom Scully not to reveal to lawmakers his estimates for the Medicare legislation, according to the New York Times.
Thompson told reporters, "There seems to be a cloud over this department because of this," adding, "We have nothing to hide, so I want to make darn sure everything comes out.”
The Philadelphia Inquirer last week reported that an e-mail from Foster to colleagues at CMS indicated he believed he might lose his job if he revealed his cost estimates for the Medicare legislation. Foster confirmed the allegations in interviews published in several newspapers last week.
According to the OMB, estimates released after Congress passed the legislation, the Medicare law will cost $534 billion over the next 10 years, $134 billion more than estimated by the Congressional Budget Office.