Health care fraud is a serious issue. It costs the American healthcare system billions of years annually. That’s why the recently passed health insurance law takes steps to further prevent and prosecute it, including:
- $300 million in funding over the next decade for the Department of Health and Human Services and Justice Department for stronger enforcement.
- Greater oversight authority over Medicare and Medicaid participants to protect against fraud
- Longer prison sentences for criminal medical fraud cases.
Last year, the federal government recovered $2.5 billion that was defrauded from the Medicare trust fund. Those overpayments are often passed onto private health insurance plans. Reducing fraud will give the Obama administration more leeway to enact reforms.