Feds bust up $26 million Medicare fraud rings

Federal investigations have uncovered Medicare fraud schemes totalling $26 million.

In one case, owners and employees of four medical suppliers based in California and Nevada allegedly billed Medicare for $12 million worth of medical equipment that was never provided or was ordered on behalf of patients who didn't need it or who were deceased, the Los Angeles Times reports. 

In another case, a Long Beach, Calif., man was arrested for recruiting relatives and gang members to pose as owners of bogus medical supply companies. The "companies" then billed Medicare for medical equipment totaling $11.2 million.

The busts reflect a growing trend in which Medicare fraud schemes are trickling down into organized crime. 

For more on this story:
- check out the Los Angeles Times story
- read this Huffington Post article

Suggested Articles

The profit margins and management of Community Health Group raise questions about oversight of managed care insurers.

Financial experts are warning practices about the pitfalls of promoting medical credit cards to their patients.

A proposed rule issued by HHS on Tuesday would expand short-term coverage, a move Seema Verma said will have "virtually no impact" on ACA premiums.