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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.
Abstract:
The majority of the United States health care fraud has been focused on the major public program, Medicare. The yearly financial loss from Medicare fraud has been estimated at about $54 billion. The purpose of this research study was to explore the current state of Medicare fraud in the United States, identify current policies and laws that foster Medicare fraud, and determine the financial impact of Medicare fraud. The methodology for this study was a literature review. Research was conducted using a scholarly online database search and government Web sites. The number of individuals charged with criminal fraud increased from 797 cases in fiscal year 2008 to 1430 cases in fiscal year 2011-an increase of more than 75%. According to 2010 data, of the 7848 subjects investigated for criminal fraud, 25% were medical facilities, and 16% were medical equipment suppliers. In 2009 and 2010, the Health Care Fraud and Abuse Control Program recovered approximately $25.2 million of taxpayers' money. Educating providers about the policies and laws designed to prevent fraud would help them to become partners. Many new programs and partnerships with government agencies have also been developed to combat Medicare fraud. Medicare fraud has been a persistent crime, and laws and policies alone have not been enough to control the problem. With investments in governmental partnerships and new systems, the United States can reduce Medicare fraud but probably will not stop it altogether.
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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