Do you have a citation for this? It doesn't sound implausible, but a citation would be nice.
http://abcnews.go.com/Nightline/medicare-fraud-costs-taxpaye... says that the govt admits to $60B/year in medicare fraud.
http://issa.house.gov/index.php?option=com_content&task=... says that the number is closer to $150B .
Meanwhile, the govt recovered $4B in 2010. http://www.publicbroadcasting.net/kwgs/news.newsmain/article... .
IIRC, the total profit by private healthcare companies was less than $10B in 2009 and the executive salaries total was under $1B. You've said that the 2010 numbers are somewhat better.
Do you have a citation for this? It doesn't sound implausible, but a citation would be nice.