Posted On: July 16, 2010 by Mercedes Varasteh Dordeski

Nationwide Health Care Fraud "Bust" Includes 11 From Metro Detroit

Dozens of unscrupulous health care providers across the county were rounded up today in what federal officials are referring to as the country’s largest Medicare fraud crackdown. Individuals from five states, including several Metro Detroit residents, were involved in the estimated $251 million fraud scheme. Those arrested in the Metro Detroit cases are alleged to be responsible for $35 million in Medicare fraud, while others were arrested in Miami, Houston, New York City, and Baton Rouge.

Despite the timing of the bust, based on news reports it does not appear that the fraudulent schemes are connected. Some charges involve home health care companies billing Medicare for equipment or treatment that patients did not need, or never even received. In Brooklyn, New York, eight individuals were charged with operating a $72 million scam where a clinic owner paid patients in exchange for using their Medicare numbers and submitting bogus claims for physical therapy. Other claims involved HIV infusion fraud. The metro Detroit cases involved several home health companies accused of billing for unnecessary services, and paying kickbacks in order to recruit patients.

According to United States Attorney Barbara McQuade and Detroit FBI chief Andrew Arena, economically depressed areas like metro Detroit are “hot spots” for Medicare fraud. Areas such as Miami, which houses a significant elderly population, are also common areas for fraud schemes to unfold.

Individuals who believe their employer may be improperly billing Medicare and Medicaid, or who have questions about potential health fraud cases, should contact an experienced health care attorney.

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