Friday, July 16, 2010

Medicare Bust

Federal authorities cracked down on Medicare fraud nationwide today across 5 states. Eleven were arrested in Michigan and 94 were indicted nationwide.

The local health care companies were located in Detroit, Livonia, Southfield and Oak Park.

From the Detroit Free Press:


McQuade and Detroit FBI chief Andrew Arena said economically distressed areas like metro Detroit are hot spots for Medicare fraud, which prompted McQuade to assign more people to prosecute such cases.


From the Detroit News:

"They prey on people desperate for drugs," said Barbara McQuade, U.S. Attorney for the Eastern District of Michigan. "Prescription drugs often are the benefit provided. They exchange stats that allow false billing."