Healthcare Kickbacks Exposed – Laws Must Be Enforced to Cut Costs

(Isstories Editorial):- Fort Myers, Florida Sep 30, 2025 (Issuewire.com) – The American healthcare system is being crushed by hidden kickbacks between providers and insurance companies — a nationwide scheme that cheats taxpayers, inflates premiums, closes factories, destroys jobs, and keeps costs rising. At the heart of the problem is the so-called “negotiated fee,” a misleading term that disguises payments for patient steering rather than genuine discounts.

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By law, providers and insurers must report the full billed amount as income. Instead, they conceal part of the debt as “adjustments,” creating massive unreported taxable income. This practice not only violates tax law but also undermines competition and fairness in the healthcare industry. The Supreme Court has ruled that the amount listed on a patient’s bill is recognized for income tax purposes; however, providers and insurers often disregard this by operating as if they were on the cash method instead of the required accrual method.

Here is how the kickback scheme works:
1. Insurance companies select providers who agree to the most significant write-offs of patients’ bills.
2. The provider issues a bill at the full legal charge, creating a debt owed by the patient.
3. The insurer pays less than the full amount, disguising the shortfall as a ‘contractual adjustment.’
4. Both provider and insurer report only the reduced payment to the IRS, not the full legal income.

This arrangement cheats taxpayers, exploits patients, inflates premiums, and guarantees that healthcare costs will continue to rise. Because patient bills are confidential under HIPAA and provider-insurer contracts are hidden as ‘trade secrets,’ the IRS and the public cannot see the difference between what was billed and what was collected. That secrecy allows the scheme to thrive undetected.

This crisis cannot be fixed unless our laws are enforced. Every American must understand: without enforcement, healthcare costs will continue to rise, taxpayers will be cheated, businesses will collapse, and jobs will vanish.

Here’s what you can do:
– **Check your medical bills and Explanation of Benefits (EOBs).** If you see “adjustments” or reduced payments, you may be holding evidence of tax evasion.
– **Report violations to the IRS** using Form 3949-A or file a Whistleblower Claim with Form 211. Both are available at www.IRS.gov.
– **Share the truth.** Tell friends, family, and local media. Awareness is the first step toward accountability.

The hidden cost of kickbacks extends far beyond the healthcare sector. Employers, particularly manufacturers, face spiraling premiums that increase the cost of doing business in America. Factories struggle to compete with overseas manufacturers who are not burdened by these inflated costs–the result: plant closures, lost jobs, declining wages, and weakened communities.

The Gross Domestic Product (GDP) report for the United States is produced by the Bureau of Economic Analysis (BEA), which is part of the U.S. Department of Commerce. The Chart shows the change in the percentage of the Healthcare Industry and the manufacturing industry, highlighting the damage that has already been done over the past forty years.  As money is illegally diverted into healthcare, it harms manufacturing. 

This is not just an economic problem — it is a national emergency. The erosion of American manufacturing undermines our financial stability and weakens our national security. If no action is taken, we face a downward spiral: higher premiums, fewer jobs, mounting debt, and the collapse of our financial system.

Ultimately, this fight is about more than money. It is about democracy itself. A nation that cannot enforce its own laws, protect its workers, or shield its citizens from exploitation cannot sustain democratic government. If the healthcare kickback scheme continues unchecked, America risks losing both its economic foundation and its democratic future.

The press has a duty to expose this issue, but lasting change ultimately depends on the actions of citizens. Check your medical bills and Explanation of Benefits (EOB) forms. If you see “adjustments” or reduced payments, make copies — they may be evidence of abuse. Share this information, report it to the IRS, and speak out so others understand what is happening. Only through public awareness, reporting, and collective action can this scheme be stopped.

This is why urgency matters. Every day this scheme continues, billions of dollars are hidden from taxation, while ordinary Americans and employers pay more in premiums, wages stagnate, and jobs disappear.

The time to act is now. Don’t wait for Congress to fix this. Don’t assume someone else will step forward. Every citizen has power — by speaking out, reporting evidence, and demanding enforcement, we can stop this scheme. Together we can restore fairness, save trillions in healthcare costs, revive American manufacturing, and protect our democracy.

This is more than healthcare. It is about justice, jobs, and the survival of our nation. If we stay silent, nothing changes. If we act together, we can finally break the stranglehold of providers and insurers over our health, our economy, and our democracy.

**No more hidden kickbacks. Enforce the law. Lower the costs. Save our jobs. Protect democracy.**

Roy J. Meidinger, author of *Economic Liberation*, has dedicated decades to uncovering hidden abuses in the healthcare industry. His book explains how America can save trillions in healthcare costs, expand coverage to all, restore manufacturing strength, and protect our democratic future.

Media Pitch

Editors want stories that matter to their readers. This release is more than an exposé — it is a warning and a call to arms. Every reader is directly affected by higher premiums, increased taxes, job losses, and the decline of American industry. Framing the story around rising healthcare costs, factory closures, and the threat to democracy makes it both urgent and newsworthy.

Suggested pitch: “Hidden healthcare kickbacks are destroying American jobs, raising your premiums, and threatening our democracy. Roy Meidinger, author of *Economic Liberation*, exposes this nationwide scheme and calls on every American to act now.”

This article was originally published by IssueWire. Read the original article here.