NEWS MAIN

Medical Trash Used for Fraud Haunts Patients/Raises IRS Flag

(AP) The New York Times reports that private insurance carriers have paid over $1 billion in phony medical bills to bogus medical firms in the last few years. Investigators said that companies, using post office boxes as return addresses, list the name of unsuspecting doctors and patients on submitted claim forms.

 

After a few weeks, the companies shut down and move to open again under a different name. The bills include fabricated diagnoses of patients which are logged into insurance companies' computers with the patient none the wiser.

 

This is very detrimental to the consumer because it affects their future insurability and employ-ability. From the doctors side, the IRS becomes a problem because there is a major discrepancy in their income.

 

Investigators claim that perpetrators of this fraud scour the dumpsters of hospitals and medical facilities for the information.

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