Business
Health Companies Call Medicare Summit a Fraud
Around the State
Last week's Medicare Fraud Summit in Miami was reinforced by a record takedown of scam artists who were allegedly bilking the federal health-care program.
But some health-care companies charged that Medicare's own bidding procedures virtually ensure more fraud and failure.
Nearly 100 providers were charged Friday with filing bogus claims for service. Indictments cited fraudulent billing for home health care, HIV therapy and medical equipment.
Medicare officials said the 94 providers had attempted to bilk $251 million from the taxpayer-funded system. Friday's sweep -- which involved 350 federal agents in Brooklyn, Baton Rouge, Detroit and Houston -- was the biggest single-day fraud bust in Medicare's 45-year history.
"These criminals have siphoned valuable resources from the most vulnerable among us,'' U.S. Attorney General Eric Holder said at a news conference at the Medicare Fraud Summit. "With today's arrests we're putting would-be criminals on notice: Health care fraud is no longer a safe bet.''
But some summit attendees said the government's own bidding policies undermine Medicare and ultimately hurt patients.
"Medicare is not listening to the concerns of the elderly or the accredited and licensed durable medical equipment providers," complained Robert Brant, president of Accredited Medical Equipment Providers of America.
Brant added, "Medicare allowed out-of-area, inexperienced, financially bankrupt companies to win with desperate 'suicide bids.'"
"The only thing that has changed is that Medicare lowered their financial qualifications and bids are now much lower than manufacturer's cost," Brant charged.
Representatives of the industry trade group, the Florida Alliance of Home Care Services, also were in attendance and called the Medicare bid rules unsustainable.
Calling the summit itself a fraud, the Doral-based association protested the event.
"Medicare said it was only going to allow financially sound companies to win the bid, yet, for example, large national firms on the verge of bankruptcy with $250 million in debt, due in two years, were allowed to win," FAHCS President Roger Ribas said.
Ribas added:



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