What is Medicare Fraud?

Medicare fraud occurs when a hospital, nursing home, doctor's office, hospice care facility, ambulance service, pharmacy, rehabilitation center, or any other type of healthcare provider overbills Medicare.


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Medicare fraud whistleblowers are almost always healthcare professionals. They are commonly employed as hospital administrators, nurses, hospice or nursing home workers, ambulance drivers, pharmacists, or as any other type of healthcare professionals.

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Detroit-area resident Pleads Guilty to Medicare Fraud
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Tausif Rahman, a Detroit-area resident, has pleaded guilty to participating in a money laundering scheme as well as Medicare Fraud. The fraud and money laundering scheme is estimated to have cost the tax-payers $14 million.  The Detroit-area resident who is 37 years of age, pleaded guilty before U.S. District judge Gerald E. Rosen. The accused pleaded guilty to one count of money laundering and one count of conspiracy to commit health care fraud. Rahman faces a jail term of up to 30 years and a fine of $750,000.

According to the government, the scam started far back in July of 2008. Rahman had co-conspirators who together with him acquired three home health agencies in the Detroit-area. The names of the home health agencies were; first Care Home Health Care LLC, Physicians Choice Home Health Care LLC and Quantum Home Care Inc. The three health care agencies submitted bills to the Medicare program for visits of patients that never occurred. From July 2008 to September 2011 the three agencies had been able to siphon $14 million from the Home Medicare program, payments which were illegal and falsely justified. Rahman was the biggest beneficiary of this this scheme as he fully or partly owned the home health care agencies.

Doctors and non-licensed personnel who acted as doctors were also involved in this scam. Mr Rahman bribed and paid kick-backs to doctors for health care services that were falsely billed and never occurred. Others involved in this scheme were the nurses, physical therapists and their assistants who coordinated to create patient’s files. Some of the patients were recruited to cover-up for the scam and in turn they received kickbacks from Rahman. The health care charts of these recruited patients were forged and signed to show that they had received health care services, which was not the case. This resulted in Mr Rahman billing Medicare for services he had not provided.

To further cover his steps, Rahman formed a shell company named; Geo Rehab LLC, where funds from the money laundering schemes were channeled. His co-conspirators also did the same and that is where they received money from Rahman. 

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