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It has been reported that Medicare may have paid up to $92 million since 2000 to medical suppliers who sent in bills for home medical equipment. According to investigators the doctors who names were used on the billing had been dead for up to five years.The Centers for Medicare and Medicaid Services (CMS) was advised of the problem some six years ago but has failed to correct the problem. Since 2000 they have apparently honored about 500,000 of these claims.
Last year, a Medicare Fraud Strike Force was established. It was hoped that it would help to solve the problem which it is estimated costs taxpayers tens of billions of dollars annually.
I believe this problem with fraudulent billing has made it more difficult to obtain reduction from CMS for individuals that have been hurt in motor vehicle accidents. Any money paid by Medicare for medical bills related to injuries sustained in a car accident must be reimbursed by the injured person if they receive a settlement or a jury award in their personal injury case. This lien or right to subrogation or reimbursement is primary and must be paid. With the fraud that appears to be occuring I suspect that it will become more difficult to obtain reductions for deserving people who have been injured in automobile accidents.
Mike Schafer is an attorney that handles car, truck and motorcycle accidents in Louisville, Jefferson County KY. For more information go to mikeschaferlaw.com
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