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Melgen-Menendez scandal throws spotlight on Medicare, Medicaid fraud

Home - by - February 20, 2013 - 20:30 America/New_York - 6 Comments

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The federal investigation into the relationship between Democratic donor Dr. Salomon Melgen and Sen. Bob Menendez (D., N.J.) has exposed the rampant culture of Medicare and Medicaid fraud, which by some estimates cost taxpayers as much as $98 billion in fiscal year 2011.

The raid by the FBI and the Department of Health and Human Services (HHS) of Melgen’s eye center in Florida spanned two days in late January. The involvement of HHS indicated “the search-and-seizure raid has ties to a possible Medicare fraud inquiry,” the Miami Herald reported. The FBIreportedly went in after authorities spotted a shredding truck; boxes and bags of evidence were removed from Melgen’s office.

“Normally, federal searches of businesses occur during the day during normal business hours. The fact that this search began on Jan. 29 and lasted some thirty-plus hours and ended Jan. 30, tells us the scope of this search was major,” Ken Boehm, chairman and cofounder of the National Legal and Policy Center, said by email. “Also, the presence of crow bars and drills would seem to indicate that materials being sought were locked up. By any conventional yardstick, all of this activity tells us this is a very serious investigation.”

The exact scope of Medicare fraud in America is unknown. However, the GAO has long identified Medicare as a high-risk program, and it has issued frequent reports on identifying fraud and finding ways to help combat it.

The Obama administration recently touted its efforts in combating Medicare fraud, claiming in a release last week it had “record-breaking” recoveries of $4.2 billion for FY 2012 from individuals and companies who attempted to defraud Medicare and Medicaid.

However, while the numbers were impressive and reported by many media outlets, critics say such recovery figures are suspect.

MORE  http://freebeacon.com/an-eye-on-fraud/

» 6 Comments

  1. Aufklarer

    February 20th, 2013

    This is, unfortunately, typical.
    There are very complex procedures I perform for bone infections that do not fit the standard codes. As a result I will work for six or eight hours in the operating room and never receive a dime from medicare or medicaid. But, if your scam is big enough and you have the right Democrat political connections, you can steal millions.

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  2. Aufklarer

    February 20th, 2013

    Like they say, no good deed goes unpunished.

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  3. FreeMan & Sarah Intend to Defend

    February 20th, 2013

    A democrat? Involved in fraud? No way I tell you, no way!

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  4. FreeMan & Sarah Intend to Defend

    February 20th, 2013

    The freaking edit thing is hot, best belated birthday present I could ask for.

    And to add post notes in the same message, just great.

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  5. thirdtwin

    February 20th, 2013

    Great. If the past is any indicator, we’re going to get saddled with the Menendez Medicare Medicaid Reform Act.

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  6. HardyBrooks

    February 21st, 2013

    It is a known fact that if you wish to commit M/M fraud here in S Fla, you can set up a medical business, apply for the proper M/M validation provider numbers, work with corrupt Physicians,
    medical clinic owners/office managers and workers,
    misuse M/M recipient numbers by theft or over charging for medical procedures and equipment, run it for 18 months before any “corruption investigation” is started and when the feds finally get to where they start looking for the business, find out it was nothing more than a P.O.Box and physical address at a storage unit, with all involved laughing as they have a couple of million cashed checks and relocated somewhere else in S fla to begin their scam again. This has been going on since the managed care hmo fiasco started in the early 90′s with the owners fleecing about 140 million from fed/state coffers and relocated to Spain when it got too hot for them in the USA, no extradition with Spain worked out well………

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