Two dozen people were now facing charges due to the alleged $1.2 billion scam that peddled useless orthopedic braces to thousands of seniors enrolled to Medicare. It was after Federal agents confirmed that there are doctors being accused on writing fake prescriptions requiring patients to use unneeded braces.
Medicare fraud tip line unit assured that they are already taking neccessary actions against 130 medical equipment companies involved on billing Medicare a total of $1.7 billion where Medicare’s loss was estimated to more than $1.2 billion.
The Justice Department said the scheme relied on overseas call centers to inquire Medicare numbers from their members and use it in laundering profits over offshore healthcare companies to buy high-end cars, yachts and luxury homes.
“The telemedicine we are talking about is basically a tele-scam. We are not talking about the use of advanced technology to provide better access to care,” said Gary Cantrell, who inspects fraud investigations for Health and Human Services (HHS) inspector general’s office.
IMAGE © Department of Health and Human Services, Office of Inspector General via AP 
IMAGE © Department of Health and Human Services, Office of Inspector General via AP 
IMAGE © Department of Health and Human Services, Office of Inspector General via AP 
IMAGE © Department of Health and Human Services, Office of Inspector General via AP
Prior to the crackdown, officials detected the scam last summer when fraud hotline received numerous of grievances from Medicare’s beneficiaries informing them about the “telemarketers” who would reach out to them and provide “free” orthopedic braces. Interested members would be then connected through call centers, which the officials described as an “international telemarketing network” with wide operations in the Philippines and Latin America.
After verifying the member’s Medicare coverage, they will be transferred to telemedicine companies to be consulted by doctors who will write prescriptions for orthopedic braces without re-assuring whether the patient needs it or not. Instances are, the patient would get several braces.
Call centers will collect prescriptions and send it over to medical equipment companies who are responsible on sending the braces and billing Medicare. These medical equipment companies would bill Medicare for $500 to $900 per brace and would get a kikcback of almost $300 per brace.
Officials said that charges are now being filed against defendants in California, Florida, New Jersey, Pennsylvania, South Carolina and Texas. However, the named defendants were not responding to the messages but federal agents are still cooperating with people that are familiar with the said scheme.
The investigation continues as authorities asked the doctors linked to the scheme to voluntarily come forward.
In a statement provided by IRS criminal investigations chief Don Fort, he said that the “nationwide conspiracy should be frightening” to all members who are relying on health cares.
Medicare, in recent times, tried to adapt techniques being used by credit card companies to track down possible fraudulent acts.
Though the government has an option to win back some of Medicare’s losses by seizing fraudster’s assets and accounts most especially the properties bought with the proceeds from the scam.
On the other hand, Medicare beneficiaries doesn’t need to pay anything upfront for the service but their privacy, such as their medical records, can be used for illegal purposes.
To report possible fraudulent act on your Medicare coverage you can call 1-800-MEDICARE (1-800-633-4227) or reach out the Office of the Inspector General at 1-800-HHS-TIPS (1-800-447-8477).
