Intimidation found in Medicare probe

WASHINGTON, July 7 (UPI) -- A federal investigation confirms an actuary was threatened with firing if he refuted White House estimated drug benefit costs, the New York Times said.

The Department of Health and Human Services internal inquiry found the Medicare Administrator Thomas Scully issued the threat to chief actuary Richard Foster while lawmakers were considering major changes in the program last year.

Foster had estimated the Medicare legislation would cost $500 billion to $600 billion over 10 years, while the White House told Congress the cost would not exceed $400 billion.

However, no laws were broken, the report said, adding the department supported the Justice Department's view Scully had "the final authority to determine the flow of information to Congress," and the actuary "had no authority to disclose information independently to Congress."

Scully has since resigned. He originally denied threatening Foster but acknowledged telling him to withhold the information from Congress.

The report said if Scully still worked for the government, he might be subject to disciplinary action for possible violation of the department's standards of ethical conduct.