Health Care Fraud Results in $2.5 Billion in 2010

Federal agents recovered $2.5 billion from health care fraud judgments in the budget year that ended in September, 2010.  Whistleblowers receive credit for this record-breaking amount, along with the Obama administration for making a renewed effort to focus on fraud.  While Congress looks for ways to cut budgets because of the deficit, a new drive to create more accountability for Medicare programs has begun.  A Congressional appointed commission voted 13-1 to also begin co-pays for Medicare home health "skilled visits" to help decrease fraud in this area.

Health and Human Services Secretary Kathleen Sebelius announced that continued arrests and charges will be made for efforts in the False Claims Act.  In addition, new systems added to the new health care law were designed to prevent fraud in the future. 

This results in the largest recovery of taxpayer dollars in the history of the Justice Department, at $4 billion overall for the False Claims Act.  Whistle-blowers received about $300 million in 2010, after turning in fraud they witnessed.

The health care law created one agency and expanded another to help recover stolen money.  The actuary for Medicare expects the provisions of the law to save an additional $4.9 bilion in fraud and abuse during the next 10 years.  The money will be folded back into Medicare.

More than half the money recovered came from pharmaceutical companies.  In 2011, the screening process for new Medicare providers and suppliers will be more strenuous.

You can report Medicare fraud and retain confidentiality by calling the Inspector General's office at 1-800-HHS-TIPS (1-800-447-8477)or by email at:  HHSTips@oig.hhs.gov

Medicare fraud has resulted in more than $6 billion.  Learn about the Medicare and Medicaid reimbursements for nursing home care and plan your retirement care ahead of time.