Nationwide Brace Scam
The Department of Health and Human Services Office of Inspector General, with our law enforcement partners, announced in April 2019 our efforts in dismantling one of the largest healthcare fraud schemes ever investigated, in terms of amount billed to Medicare.
Twenty-four defendants in 17 Federal districts were charged for allegedly participating in the scheme, in which fraudsters submitted over $1.7 billion in Medicare claims and were paid $900 million. In the alleged scheme, medical professionals working with fraudulent telemedicine companies received illegal kickbacks and bribes from medical equipment companies. In exchange, the medical equipment companies obtained prescriptions for medically unnecessary orthotic braces and used them to fraudulently bill Medicare. This enforcement action demonstrates the positive impact OIG is making to fight fraud and protect HHS programs and beneficiaries.