Why does Obama claim that the public option will reduce insurance fraud?

Most insurance companies are private companies. They have a real interest in avoiding fraud because it undercuts profits. If there are frauds perpetrated on a private company who has a stake in preventing it how much more will it happen in a public policy. Nobody owns government money. There is usually very little oversight in government projects because there is a lack of ownership. An individual will be more careful with his own money than he would with somebody else's money. The problem with government money is that it does not belong to anybody. It is just that, somebody else's money. There will be very little oversight leading in greater amount of money lost in fraudulent deals.