What is Medicaid fraud?

A series of letters in today's New York Times responds to an article on Medicaid fraud. Here's my overall summary:

NY Medicaid reimbursement is so low (e.g., $7.50 to see a hospital patient), that anyone earning a profit serving Medicaid patients must be committing fraud.

As the last author writes, “If Medicaid paid more for the time a doctor needs to practice good medicine, less money would have to be spent on criminal investigations.”

(Apologies for not including links or formatting. I'm blogging by Blackberry.)