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Healthcare Fraud: Everything You Need to Know

Healthcare fraud is a very serious crime and is being handled more aggressively than ever. Healthcare fraud refers to “fake” treatments, medications, and other forms of healthcare. These crimes can be perpetrated against patients, the insured, or healthcare providers and are quite expensive.

Healthcare fraud typically occurs with health insurance companies. Health insurance fraud happens when a person or organization fraudulently defrauds a private or governmental health insurance plan, such as Medicaid or Medicare.

Some other common types of healthcare fraud involve individuals and small organizations. Other types of healthcare fraud are sometimes referred to as “black-ops” scams that involve stealing identities and confidential information.

Healthcare fraud comes from a variety of sources including

  • Doctors
  • Medical institutions
  • Pharmaceutical companies
  • Medical offices
  • Clinics
  • Hospitals
  • and other types of agencies or organizations that provide healthcare services

Healthcare fraud also refers to fraudulent activities and practices by medical professionals that do not meet accepted standards. This type of fraud is often difficult to detect and can lead to serious consequences.

Healthcare Fraud

Healthcare fraud can occur when a healthcare provider or a hospital tries to get payment for medical services. Some examples include

  • Overcharging patients
  • Billing patients with the wrong number
  • Prescribing medications that are not in the patient’s medicine cabinet
  • Giving prescriptions for medicine that is not prescribed by a doctor
  • Prescribing an illegal drug.
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These activities are unethical and are against the interests of both patients and the healthcare provider

In addition, some healthcare providers try to bill patients with a fictitious or false medical record. Some healthcare providers even use their professional power or authority to obtain money from patients by exaggerating the importance of their medical problems and the importance of their services to the treatment of those problems.

Healthcare fraud is generally defined as the intentional deception of another person or persons through the act of using his/her healthcare. Health care fraud involves “snake oil” medical marketing, pharmaceutical sales, illegal drug sales, and healthcare fraud.

Healthcare fraud occurs whenever an organization or an individual fraudulently defraud a government healthcare system, including Medicare or equivalent State health programs, by defrauding the insurer that insures the plan.

There are several different types of healthcare fraud which include

  • Billing for services that have not been rendered
  • Providing treatments to patients who are not sick or injured
  • Falsely claiming payments from Medicare and private insurance

These types of healthcare fraud can lead to criminal and civil penalties and even criminal prosecution, in some cases.

The most common type of healthcare fraud is healthcare insurance

Insurance fraud refers to insurance frauds, such as those involving Medicare or other public health insurance plans. Pharmaceutical companies are also very vulnerable to healthcare fraud. Pharmaceutical companies typically provide treatment in the form of drugs for a wide range of medical conditions, but the side effects of many prescription drugs can sometimes be fatal.

It’s hard to imagine any organization that doesn’t fall into one of the categories above, unless there is a strong reason to doubt whether healthcare insurance and pharmaceutical sales are valid businesses. There are several areas where pharmaceutical companies and health insurers are vulnerable. One of these is in the area of fraudulent claims reimbursement.

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Healthcare fraud is most often associated with fraudulent claims reimbursement

Claims reimbursement refers to the process of reimbursing medical providers who provide services. Claims reimbursement can occur when an insurance provider pays for a service, but the service is not rendered properly.

This can happen in many different ways. One example of a fraudulent claim reimbursement is if a hospital or medical practice fails to provide proper attention or diagnosis to a patient who claims to be suffering from a specific illness but was not in fact sick or injured.

Another example of fraudulent claims reimbursement is the case of false referral, wherein the doctor or hospital incorrectly refers a patient to another doctor or another medical institution based solely on the information contained in a medical record that the doctor has provided.

In many instances, false referrals can result in a patient receiving treatment that doesn’t actually help the patient. and sometimes even cause their death.

Healthcare fraud is not the only way in which healthcare providers can commit fraud

There are also several other methods of fraud that can occur. Some examples include the case of a doctor intentionally prescribing drugs that are not intended to be used in treating a patient or prescribing medications that aren’t prescribed by a pharmacist.

Pharmaceutical fraud can also include the distribution of medications that have not been approved by the FDA or are illegal to prescribe for certain conditions.

Healthcare providers are responsible for a number of crimes that may involve the distribution of illegal drugs. If these drugs have been improperly distributed or are illegal for some other reason, the providers can be prosecuted for the crime, and face stiff penalties.

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In addition to healthcare providers, healthcare facilities that participate in a program that provides for a medical insurance premium rebate for participating in such programs are also susceptible to fraudulent activity.

The most common example of this type of fraud happens when a person receives a fraudulent bill from a facility for medical services that were not rendered at the facility. The bill would have a lower amount of coverage, or it could have a large amount of coverage that has been removed after being deducted from the original premium payment.

Another example of fraudulent service occurs when a facility sends out incorrect medication, or a patient receives a medication that the facility knows will cause a side effect. This can happen if a doctor prescribes the wrong medicine and sends it out to a patient.

Healthcare providers and facilities have a responsibility to protect themselves by being vigilant in screening their employees for fraudulent activities. They should take steps to ensure that they are not defrauding Medicare or other health insurance programs.

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