Obama Administration Turns Up the Heat on Medicare Fraud

July 2, 2009

Federal agents begin arresting accused fraudsters under new HEAT initiative.

On June 24, 2009, federal agents from the FBI and the Department of Health and Human Services' (HHS) Office of Inspector General began executing arrest warrants in several U.S. cities, including Detroit, Miami and Denver, as part of a new effort to address Medicare fraud. Charges were brought against 53 individuals who are accused of various Medicare fraud offenses, including conspiracy to defraud the Medicare program, criminal false claims and violations of the anti-kickback statutes.

The indictments are part of a multi-phase enforcement and regulatory effort knows as the “HEAT” initiative (Health Care Fraud Prevention and Enforcement Action Team), which is designed to reduce the potential for Medicare and Medicaid fraud. Regarding the recent indictments and the HEAT Taskforce, HHS Secretary Kathleen Sebelius stated:

The Obama Administration is committed to turning up the heat on Medicare fraud and employing all the weapons in the federal government's arsenal to target those who are defrauding the American taxpayer. Thanks to cooperation from across the government and some of the best law enforcement professionals in the country, today we were able to save millions of dollars from being lost to criminals and send a powerful message to those who seek to defraud the system that we are coming after them. But our joint efforts on HEAT don't just stop at the jailhouse door. Our Medicare program is working closely in partnership with our own and other law enforcement operations to prevent fraud from happening in the first place.  Every dollar we can save by stopping fraud can be used to strengthen the long-term fiscal health of Medicare, bring down costs and deliver better service to Medicare beneficiaries. 

The HEAT Taskforce, co-chaired by Deputy Attorney General David Ogden and Deputy Secretary Bill Corr, is made up of top-level law enforcement agents, prosecutors and staff from both departments and their operating divisions. The HEAT Taskforce is expanding efforts to stop fraud and prevent it from happening in the first place. These efforts include:

1. Continuing to utilize strike force teams that fight fraud in Miami and Los Angeles.
2. The recent creation of strike force teams in Detroit and Houston.
3. Helping state Medicaid officials conduct provider audits and monitor activities to detect fraudulent activities.
4. The use of modern technology to complete investigations more quickly. 

For more information on the most recent activity of the HEAT Taskforce, view the June 24, 2009, HHS press release.