Statements by members of the committees involved in the hearing document the monetary losses due to fraud and abuse in HHS programs, notably Medicaid and Medicare; the history of legislation intended to deal with the problem, including legislation establishing the Office of Inspector General to initiate and coordinate investigations of fraud and abuse; and the general lack of success of efforts to counter rampant fraud and abuse. Testimony by public witnesses includes identification of the vulnerabilities of the Medicaid and Medicare payment systems to fraud by a doctor convicted of such fraud and descriptions of the techniques of fraud reported by representatives of State agencies charged with the investigation of such crimes. Administration witnesses include the HHS inspector general and representatives from the General Accounting Office, HHS administration, and the Social Security Administration. This testimony describes what is currently being done to counter fraud and abuse in HHS programs and how this work might be improved. Materials related to the testimony are included.