GAO says ex-Medicare chief's pay illegal

WASHINGTON, Sept. 8 (UPI) -- The U.S. Congress' accounting watchdog says former Medicare chief Thomas Scully should not have been paid as he was being investigated for withholding costs.

In a 13-page legal opinion, general counsel for the Government Accountability Office, Anthony Gamboa said a 1998 federal law prohibits an agency from paying a federal official who prevents another employee from communicating with Congress.

Scully came under fire in March when long-time Medicare actuary Richard Foster said publicly that Scully had threatened to fire him last year if Foster told lawmakers the Medicare bill supported by President Bush would cost at least $100 billion more than the $400 billion the White House said it was willing to spend.

Accordingly, some Democrats want Scully to pay back his $145,600 salary, the Washington Post said.

However, HHS spokesman Bill Pierce said both the Bush and Clinton administrations have regarded the 1988 law cited by Gamboa as unconstitutional.