You may have seen some of the commercials on TV promoting www.stopmedicarefraud.com, talking about how Medicare fraud is prevalent and causing a lot of problems for the beneficiaries of Medicare.  I visited the site to see what all the concern was about and it’s surprising.

There is a small amount of bizarre criminal activity such as fake HIV clinics, Medicare numbers being stolen, and bogus claims, but much of the fraud breaking Medicare is centered around provider abuse and the mandate to enforce payment rules and guidelines.  This type of fraud is estimated to cause about $40-$60 billion in annual overpayments.

The Centers for Medicare and Medicaid Services along with the Obama administration have efforts in place to put a stop to this type of Medicare fraud.  Many providers are on board to stop this type of abuse, but unfortunately not all have the capabilities to identify the abuse.  Non-compliant claims are apparently a big problem and a major reason Medicare is facing so much criticism.  We’ll see how health care reform affects this fraud and if it helps Medicare stick around.