Another Strike Against Medicare Fraud Made in Florida

As reported last week, the Medicare Fraud Strike Force has been cracking down on doctors, health care executives, and beneficiaries for alleged fraudulent Medicare billing. This renewed effort to reduce fraud and recover stolen taxpayer funds was announced in May of this year, as a joint effort between the Department of Justice and Health & Human Services. The Health Care Fraud Prevention & Enforcement Action Team (HEAT)—of which the Medicare Strike Force is part—conducted its first big sweep in Detroit, Michigan where 53 indictments were handed down by a grand jury that led to arrests.

This week similar indictments were made in Miami, Florida, where an estimated $22 million in fraud has been alleged. Eight arrests were made in connection with the fraud scheme that involved two home health care services: ABC Home Health Care, Inc. and Florida Home Health Care Providers. According to the official statement issued by Health and Human Services, “Both ABC and Florida Home Health purported to be home health agencies that catered to Medicare beneficiaries.  The indictment alleges that at both agencies, beneficiaries were recruited and paid kickbacks and bribes to arrange for their Medicare beneficiary numbers to be used by their co-conspirators to file claims with Medicare for purported home health care services.  The indictment alleges that the services were not provided and were not medically necessary.”

In a further step, government officials have filed temporary restraining orders that will freeze the assets of the indicted defendants, ABC Home Health Care, Inc. and Florida Home Health Care Providers, as well as four other companies owned by those indicted. Acting U.S. Attorney Jeffrey H. Sloman said,  “Today’s coordinated criminal and civil action delivers an effective one-two punch to health care fraudsters: they were not only caught and criminally charged, but they are also being stripped of their illegal proceeds.”

The charges against the eight defendants were numerous and included: conspiracy to commit health care fraud, health care fraud, paying health care kickbacks, and conspiracy to launder health care fraud proceeds.