Private sleuths hired to bust fraud average 6 months to report a case to law enforcement

By Ricardo Alonso-zaldivar, AP
Sunday, August 8, 2010

Medicare’s private eyes let fraud cases get cold

WASHINGTON — Those private sleuths hired by Medicare to investigate fraud don’t seem to be that interested in hot pursuit.

It’s taking them an average of six months to refer cases of fraud to law enforcement. By that time, many cases go cold, making it difficult to catch the perpetrators, much less recover money for taxpayers.

A recent inspector general report found that out of $835 million in questionable Medicare payments identified by private contractors in 2007, the government was only able to recover some $55 million, or about 7 percent.

President Barack Obama has set a high priority on battling health care fraud and waste. The savings would help pay for the new health law covering millions of people now uninsured.

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