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Detailed text transcripts for TV channel - KGO - 20150723:09:44:00

Is costing american taxpayers $60 billion. it s money lost to waste, abuse and improper payments. some of that money is sent to fake or bad addresses, as abc s jim avila investigates. reporter: our hunt to find how medicare is losing billions of dollars brought us here, chicago s southside and this odd location for a doctor s office. you run the mailbox place? yes we do. reporter: right next door to a porn shop, a mailbox store where medicare has sent nearly $600,000 in payments. it s listed as suite 308, which in reality, is just a mailbox. there s nobody practicing medicine in here. no. reporter: the law says payments should be sent only to a location where someone is practicing medicine. still, your money flowed in. how much? reporter: $592,000. they could have at least gotten a bigger box. reporter: in a government report first obtained by abc news federal investigators charging medicare is not checking where it s sending your money, making it too easy for ....

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