The PopTort again discusses that claims of defensive medicine are also admissions of fraud, "Attention Medicaid Auditors: Doctors Admit Fraud and Call It Defensive Medicine!"
The central point to ponder:
doctors who bill Medicare or Medicaid for tests and procedures done for personal purposes as opposed to what are medically necessary for patients, are committing fraud under federal and state Medicare/Medicaid programs.
Also see this discussion on a Huffington Post blog by Joanne Doroshow, Executive Director for the Center on Justice and Democracy: "Why Medical Malpractice Reform Will Increase the Deficit, Not Reduce It."