Senate Report Uncovers Billions Lost to Health Care Fraud Schemes

According to a Senate-commissioned study, fraudulent health-care claims total over $21 billion, with more than $1 billion actually disbursed to criminal networks. The investigation points to a Russian-based scheme that extracted $941 million from Medicare by using stolen identities. Other schemes have drained federal resources, including over $100 billion from Medicare and Medicaid combined, and billions from unemployment insurance and food-stamp programs.

High-profile prosecutions include Herbert Kimble, who billed over $1.2 billion for medical braces, and Brett Blackman, whose company submitted over $1 billion in bogus equipment claims. The report urges legislative action, citing the Protecting American Taxpayers Act as a response to the ongoing abuse.