Medicare fraud in the United States: can it ever be stopped?

Chelsea Hill1, Alex Hunter, Leslie Johnson

  • 1Author Affiliations: Health Care Administration Program, College of Business, Marshall University Graduate College, South Charleston, West Virginia.

Insights

Medicare fraud costs billions annually. This study explored its current state, contributing factors, and financial impact, finding that while efforts are increasing, fraud persists despite new programs and partnerships.

Area of Science:

  • Health Policy
  • Criminology
  • Public Health

Background:

  • Medicare fraud represents a significant financial burden on the U.S. healthcare system, with estimated annual losses around $54 billion.
  • The prevalence of healthcare fraud necessitates a comprehensive understanding of its current landscape and contributing factors.

Purpose of the Study:

  • To investigate the current status of Medicare fraud in the United States.
  • To identify existing policies and laws that may inadvertently facilitate Medicare fraud.
  • To quantify the financial impact of Medicare fraud on public programs.

Main Methods:

  • A comprehensive literature review was conducted.
  • Research involved searches of scholarly online databases and official government websites.

Main Results:

  • Criminal fraud charges increased by over 75% between fiscal years 2008 and 2011.
  • In 2010, medical facilities and equipment suppliers constituted 25% and 16% of investigated fraud subjects, respectively.
  • The Health Care Fraud and Abuse Control Program recovered approximately $25.2 million in 2009-2010.

Conclusions:

  • Legislation and policy enforcement alone are insufficient to curb persistent Medicare fraud.
  • Provider education and collaborative partnerships with government agencies are crucial for combating fraud.
  • While new initiatives can reduce Medicare fraud, complete eradication remains unlikely.

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