Sunday, July 27, 2014

Pharmacy Scam Growing Trend in Health Care Fraud

Pharmacy Scam Growing Trend in Health Care Fraud
Written by Patrick Quillian

According to the FBI, health care fraud in the United States costs an estimated $80 billion annually. A Cornell University School of Law overview of health care fraud explains that 10 cents of every dollar spent on health care goes toward paying fraudulent health care claims.
The federal government does not like people dipping into its pocketbook, and thus, it aggressively prosecutes Medicare fraud and Medicaid fraud. A Health Care Fraud and Abuse Control Program (HCFAC) report says that under the program, “Convictions . . . increased by over 27 percent (from 583 to 743) between 2009 and 2011, and the number of defendants facing criminal charges filed by federal prosecutors in 2011 increased by 74 percent (from 821 to 1430) compared with 2008.” The feds are clearly cracking down on health care fraud and abuses of the Medicare system.
Although patients may be involved in health care fraud, the majority of schemes are perpetrated by health care providers. Typically, they bill Medicare or insurance providers for services not rendered, more expensive equipment than provided, and similar types of fraudulent and inflated billing. Sometimes, a health care provider will work in conjunction with a patient to perpetrate a fraud. This is what is happening more frequently in a pharmacy scam that CNBC says is bilking millions of dollars from taxpayers.
Tom O'Donnell, special agent in charge with the Health and Human Services Office of Inspector General (HHS-OIG), says that unscrupulous pharmacy owners

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