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The three most salient characteristics of Medicare and Medicaid fraud are: It's brazen, it's ubiquitous, and it's other people's money, so nobody cares. The incentive problems that these programs create for lawmakers, health care providers and patients are effectively baked into the entitlement cake. Michael F. Cannon, director of the Cato Institute's health policy studies, describes the problems.

Video produced by Caleb O. Brown and Austin Bragg.