Medicare Fraud Spreads Across Country

A Medicare card, with several areas of the card obscured to protect privacy. There are separate lines for Part A and Part B, each with its own date. There are no lines for Part C or D, as a separate card is issued for those benefits by the private insurance company.

The epidemic of Medicare fraud has been seen from Florida to Los Angeles, where federal prosecutors have indicted more than 1,000 people for making phony healthcare claims. According to Forbes, these people include healthcare workers.

In Miami, prosecutors accused 21 residents of participating in a $25 million home health care fraud scheme. The indictment included two doctors, six nurses and eleven patient recruiters who allegedly conspired to commit health care fraud, made false statements and solicited kickbacks.

Forbes reported that ABC Home Health and Florida Home Health Care Providers referred Medicare beneficiaries to two Miami area doctors for medically unnecessary home health care. The doctors then received illegal kickback payments from the owners of ABC and Florida Home Health. Nurses, recruiters and employees also received kickbacks and bribes for recruiting Medicare beneficiaries for the services.

They were arrested in February and entered guilty pleas Wednesday.

In Los Angeles, Pastor Christopher Iruke, his wife and an employee were found guilty of health care fraud that racked up more than $14 million in false claims. Iruke attempted to avoid arrest by stuffing incriminating evidence into a shredder and a toilet. He and his co-conspirators were linked to bogus prescriptions for power wheelchairs, the Los Angeles Times said.

The government was billed $6,000 for each of the wheelchairs. One recipient actually did jumping jacks to prove he never needed the unit. The pastor operated four medical equipment supply facilities between May 2002 and September 2009 as part of the scheme, the LA Times said. His case was brought about as part of a federal strike force on Medicare fraud. According to a Department of Justice Press release, charges have been brought against more than 1,000 people across the country, whose false claims have cost taxpayers $2.3 billion.
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