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Feds charge more than 90 people with Medicare fraud

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By Cat Viglienzoni - July 16, 2010

Federal agents have arrested dozens of suspects this morning in a record Medicare fraud bust. The crackdown was the largest since the federal health program began in 1965. The sting coincided with the first ever health care fraud prevention summit held in Miami.

More than 360 agents participated in the raid, which had arrested 36 people as of this morning. Of those already arrested, 33 were from Miami, regarded as the ground zero of Medicare fraud, for an alleged $140 million in various scams.

Attorney General Eric Holder said 94 people in five cities have been charged with trying to fleece $251 million in false Medicare claims. He said those charged include physicians, medical assistants and healthcare owners and executives.

"With today's arrests we're putting would-be criminals on notice: health care fraud is no longer a safe bet," he said.

Holder also said the raid helped preserve "critical assistance to elderly, disabled and impoverished Americans."

"We have safeguarded precious taxpayer dollars and we have helped to protect our nation's most essential healthcare programs - Medicare and Medicaid," he said.

The money saved by cracking down on Medicare fraud - an estimated $60 to $90 million a year - would be needed to help pay for President Obama's recent healthcare overhaul. Federal officials have promised more money and agents to fight healthcare fraud, setting up strike forces in a number of cities.

Some schemes involve companies billing Medicare dozens of times for the same piece of equipment - like a wheelchair - while never giving it to the patient. Others are more complex, involving networks of doctors, clinic owners, patients and patient recruiters.

Charges included bogus billing and treatment statements as well as scams for phony products that patients never received or used.

The healthcare fraud summit in Miami brought together government, industry, law enforcement and educational leaders. It is the first in a series planned to include other major cities like Los Angeles, Las Vegas, Detroit, Boston, New York and Philadelphia.

(Photo courtesy: AP Images)