Once Again, Washington Pledges to Fight Medicare Fraud


Published On: June 25th, 2009

magnifying glassThe Obama administration is “committed to turning the heat up” on Medicare and Medicaid fraud, Health and Human Services Secretary Kathleen Sebelius said as the government announced a new string of indictments alleging $50 million in false Medicare claims.

Medicare fraud has been a target for federal investigators for years, though their effectiveness has been questioned. Schemes to bilk the system have included payments to dead doctors, hospitals who recruited homeless people as fake patients and insurers who inflated the cost they say they spent on care.

The U.S. spends $800 billion a year on Medicare and Medicaid, $60 billion of which is estimated to be lost to fraud, notes the WSJ.

The indictments announced yesterday involved 53 doctors, health-care workers and patients and resulted in arrests in Detroit, Miami and Denver after a joint investigation by HHS and the Justice Department. The alleged schemes focused mainly use of “phony prescriptions, cash kickbacks and stolen Medicare and physician ID numbers,” which have all been widely used in schemes in South Florida, according to the Miami Herald.

“Every dollar we can save by stopping fraud can be used to strengthen the long-term fiscal health of Medicare, bring down costs and deliver better service to Medicare beneficiaries,” said Sebelius.

Image: iStockphoto


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Once Again, Washington Pledges to Fight Medicare Fraud

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