What Are Some of the Famous Cases of Medicare Fraud?


Medicare is funded by the US government. People who benefit from Medicare are the elderly and also the disabled. Because of the fact that Medicare is a very large health insurance provider, you will see that there are a lot of companies and even health care professionals who takes advantage of other people and try to get false claims.

There are quite a lot of large Medicare fraud cases where millions of dollars are involved in false claims. One famous case of false claims or fraud that Medicare experienced is from Douglas Durand who is the vice president of TAP Pharmaceutical Products Inc. He secretly compiled incriminating documents that proved that the company did indeed offer medical professionals kickbacks on the claims that didn’t even exist.

What TAP did was it pushed its products to patients and also bill Medicare for the medicine that wasn’t even needed by the patient.

Eventually, TAP was caught and paid the Federal Government a sum of 850 million dollars without even admitting or denying liability.

Another famous Medicare fraud case was done by the Quarum Health Group. The former financial manager, James Alderson, was fired by the company he worked for because he refused to participate in a fraudulent scheme to cheat Medicare. He stated that the company wanted him to keep two sets of books in order to cheat Medicare. After the case, the Quarum Health Group settled for 95 million dollars and Alderson along with his lawyers received 20 million dollars.

These are two of some of the most famous cases of fraud in Medicare.


Submit Your Comments or Questions Here