IN VIEW OF THE EXTENT OF FEDERAL SUPPORT FOR HOME HEALTH CARE PROGRAMS, STATEMENTS BY SEVERAL SENATORS AND REPRESENTATIVES MADE DURING THIS EIGHTH SESSION OF THE HEARINGS EXPRESSED CONCERN OVER THE MASSIVE AMOUNT OF FRAUD IN MEDICARE AND MEDICAID PAYMENTS THAT THE GOVERNMENT HAD EXPOSED AND THE NECESSITY OF IMPROVING THE MANAGEMENT OF EXISTING PROGRAMS BEFORE LEGISLATING ANY TYPE OF NATIONAL HEALTH INSURANCE. TESTIMONY BY A STAFF MEMBER OF THE HOUSE WAYS AND MEANS OVERSIGHT COMMITTEE ILLUSTRATED THE ABUSES FOUND AFTER AN AUDIT WAS CONDUCTED OF A LICENSED HEALTH CARE AGENCY IN CALIFORNIA. THIS COMPANY AND ITS SUBSIDIARIES HAD MANIPULATED FINANCIAL RECORDS, MISUSED FUNDS FOR PERSONAL PURPOSES, EMPLOYED DOUBLE BILLING IN MEDICARE CASES, AND EXPLOITED PREFERENTIAL TREATMENT BY INSURANCE COMPANIES. THESE ALLEGATIONS WERE SUPPORTED BY THE TESTIMONY OF FORMER EMPLOYEES. THE OWNER AND COMPTROLLER OF THE FIRM (HOME KARE, INC.) WERE SUMMONED TO TESTIFY BEFORE THE COMMITTEE BUT EXERCISED THEIR PRIVILEGES AGAINST SELF-INCRIMINATION AND REFUSED TO ANSWER ANY QUESTIONS. THE APPENDIX CONTAINS A SUMMARY OF THE INVESTIGATIONS AND RELATED MATERIALS ON HOME KARE, INC. (MJM)