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Millions Paid To Fraudsters Milking The System

Posted on Mar 10, 2011

Fraud is major concern in the medical community. Costing taxpayers millions of dollars, scammers take advantage of the system and collect huge amounts of money to which they are not entitled. Occurring in the Medicare, Medicaid and Workers' Compensation systems, fraudsters routinely bill and collect money or benefits for care or injuries that do not exist.

The New York Post published an online article covering the most recent incident involving "medi-fraud. As stated on nypost.com, "Ten Brooklyn residents were among more than 100 people rounded up in a nationwide crackdown on Medicaid and Medicare fraudsters who cost taxpayers more than $200 million, authorities said yesterday."

Seven Russian immigrants are believed to be behind the biggest scam, receiving $57 million over the span of three years. They allegedly billed both Medicare and Medicaid for activities performed in three different clinics that did not occur. This includes charges for doctor visits, diagnostic test and physical therapy.

Individuals involved play many different roles in these types of schemes. There are recruiters who "find" patients receiving benefits from Medicare and Medicaid. Others may schedule appointments going so far as to pick up the patients and pay them to participate in the fraudulent activity.

It is amazing how far these people will go to milk the system. Unfortunately the effects of fraud in the health care industry are far reaching. For this reason, it should be concern for everyone as fraud impacts how much we pay for health care, medications and even taxes.