Insurance fraud seems like it might be an easy thing to do. Insurance companies are often so huge, one wonders how they might not even notice a few mistakes in your favor. But the fact is that insurance companies have people who make it their full time job to sniff out fraud, ensuring that they keep a tight bottom line. And while they may not catch every tiny little fudge, you can be sure they are on the hunt for major offenders.
Check out these famous insurance fraud cases that surely carried a huge bounty.
Hospital Corporation Of America (HCA)/Medicare:
In 2000 and 2002, HCA pleaded guilty to 14 felonies, including fraudulently billing Medicare as well as other programs. HCA had inflated the seriousness of diagnoses, filed false cost reports, and paid kickbacks to doctors to refer patients.
HCA had to pay the US government $631 million plus interest, as well as $17.5 million to state Medicaid agencies, on top of $250 million already paid to Medicare for outstanding expense claims. It was the largest insurance fraud settlement in US history, with law suits reaching $2 billion in total.