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Dozens arrested in nationwide Medicare fraud bust


Posted on Jul 29, 2009

Many people who rely on Medicare worry that there won’t be enough federal funds to cover their medical expenses down the road.  One reason for Medicare’s precarious financial situation is the amount of fraud perpetrated every day by people taking advantage of the system.

 

This week authorities are fighting back against fraudsters, arresting 30 people across the country in a variety of Medicare fraud busts.  The $16 million bust required the work of 200 federal agents and resulted in arrest warrants being issued for a number of doctors and other individuals at various heath care businesses.

 

One popular scam involved giving patients expensive “arthritis kits” which were nothing more than orthotic braces and heating pads.  Despite clinics billing Medicare up to $4,000 for each kit, many patients claim they never received them nor did they want them in the first place.

 

Another scam involved billing Medicare for thousands of dollars of Ensure – a liquid food given to patients who cannot eat – even if the patients never actually received the goods or were deceased.

 

The crackdown is part of an effort by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius to fight the billions of dollars of Medicare fraud that happens every year.

 

The amount of fraud is shocking.  Just since 2007 federal strike forces have indicted over 293 suspects and organizations that over the years have fraudulently billed Medicare for more than $674 million – and that’s only in Miami, Detroit, and Los Angeles.

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