Investigation Reveals For-Hire Medicare Fraud Busters Take Too Long to Detect Fraud

Congressional investigators report it takes approximately six months for fraud busters hired by Medicare to report cases to law enforcement, according to a USA Today report.

By the time these for-hire private investigators, or "program safeguard contractors," report fraud to Medicare, cases often go cold, perpetrators are hard to close in on and money is less likely to be recovered, which some government leaders are saying is a waste of taxpayer money.

In 2005, $102 million in taxpayer money was used to employ these private contractors to help detect fraud. In 2007, the private contractors identified $835 million in questionable Medicare payments, but the government was only able to recover $55 million of that, according to the report.

The Obama administration acknowledges the private contractors shortfalls and is in the process of reorganizing their consolidation of work, jurisdictions and processes with claims processors and law enforcement. They will also now be called "zone program integrity contractors," according to the report.

Read the USA Today's report on Medicare fraud.

Read other coverage about healthcare fraud task forces:

- Fraud Task Force Created for Virginia

- Medicare Fraud Strike Force Expands Operations into Brooklyn, Tampa and Baton Rouge

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