Hospitals and doctors are overbilling Medicare. This is predictable. The system is large and controls are lax. Controls will never be sufficient to prevent this from happening, the more so as the system gets larger under Obamacare.
The incentives are all wrong: doctors want to make money, not save Medicare money.
There is a simple solution. Privatize. Let companies that can’t control costs fail. With the government, the costs just get passed on to future generations of tax payers.