Medicare and Fraudulent Transactions

633 Words2 Pages

Due to the sheer volume of billing received each month, it is impossible for the system to review all the information before payment has been released to providers. This has led to a reactive approach in dealing with fraudulent transactions. Medicare database systems are not discovering fraud until after the fact and thus recovering funds can be challenging. As a result, over the last two decades, several legislations have been enacted to assist the Office of Inspector General (OIG) to investigate and prosecute offenders that have committed fraudulent billings against the taxpayer funded insurance system. The False Claim Act has been successful in prosecuting, collecting monetary sanctions from offenders. Furthermore, the Recovery Audit Contractor provides additional oversight of payments in specific vulnerable areas. The integrated data repository will allow access to files in one location for advance analysis to detect fraudulent claims. The enactment of stringent enrollment procedures should decrease the amount shell companies submitting payments for no services. Furthermore, utilization of forensic accountants should be employed to locate identity fraud within the Medicare system.

The False Claim Act (FCA) provides the statues to prosecute individuals that submit false information on their claim form. The FCA allows for both criminal and civil actions to be taken against the offender. These actions can be completed through the government or whistleblowers in qui tam suits. If whistleblowers engage in a suit and win, they are entitled to a monetary reward of 3-30% of the sanctions imposed by the courts (Golinkin II, 2013). Though the government can file a criminal investigation against an offender, frequently, a settlemen...

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...fferent sections. The FCA statues provide criminal sanctions but also the means of monetary recovery for the fraudulent acts. The RAC allows for greater scrutiny to claims in specific high fraudulent areas of supplies and home agencies. The OIG provide the necessary tools for providers to stay current on laws and common mistakes on claim forms.

Works Cited

Blank, S. M., Kasprisin, J. A., & White, A. C. (2009). Health care fraud. American Criminal Law Review, 46(701), 703-758.
Gingerich, B. S. (2009, April). National Recovery Audit Contractor (RAC) Program Expansion. Home Health Care Management Practice, 21(3), 208-210. doi:10.1177/1084822308327962
Golinkin II, J. W. (2013, July). Fishing with landmines: Healthcare fraud and the civil false claims act- Where we are, How we got here, and the case for more trials. American Journal of Criminal Law, 40(3), 301-325.

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