Scammers stealing billions of dollars from Medicare and Medicaid, investigation reveals

>>> WHILE WASHINGTON ARGUES OVER HOW MUCH TO SPEND ON MEDICARE AND MEDICAID, FRAUDSTERS ARE STEALING STAGGERING AMOUNTS ALLOCATED FOR HEALTH CARE AND COSTING TAXPAYERS BILLIONS. A CNBC INVESTIGATION FOUND THE SYSTEM RIDDLED WITH ABUSE AND EASILY EXPLOITED. HERE'S CONTESSA BREWER. >> Reporter: THIS IS THE FACE OF HEALTH CARE FRAUD. A MIAMI BUSINESSMAN COUNTING STOLEN MEDICARE MONEY IN THIS VIDEO SECRETLY RECORDED BY A GOVERNMENT INFORMANT. THE SCHEME SPANNING FROM SHAM STORE FRONTS TO EMPTY OFFICES BILLING THE GOVERNMENT. >> WE'RE GOING TO HEAD OVER TO A DURABLE MEDICAL EQUIPMENT COMPANY. >> Reporter: OMAR IS THE SPECIAL AGENT IN CHARGE OF HEALTH AND HUMAN SERVICES OFFICE OF INSPECTOR GENERAL AND TOOK US ON A RARE RIDE ALONG TO SHOW US HOW THE FRAUD WORKS. SCAMMERS FIRST BUY LISTS WITH PATIENTS AND DOCTORS' PERSONAL DATA. >> WITH THOSE TWO KEY PIECES OF INFORMATION, THEY CAN JUST START SUBMITTING CLAIMS TO MEDICARE. >> Reporter: ESTIMATED MEDICARE AND MEDICAID FRAUD TOPS $100 BILLION ANNUALLY. HERE IN SOUTH FLORIDA, PEREZ SHOWS US A STOREFRONT USED TO STEAL $48 MILLION IN A SINGLE YEAR. THE MASTERMIND, THE MAN COUNTING THE MONEY. JESUS GARCES WHO PLED GUILT TO HEALTH CARE AND WIRE FRAUD SENTENCED TO TIME IN PRISON. THIS IS A HOTBED FOR FAKE COMPANIES SET UNTO BILL MEDICARE. >> MOST TIMES WE SHOW UP THERE'S NOBODY THERE OR IF THERE IS SOMEONE THERE THEY HAVE NO CLUE WHAT BUSINESS THEY ARE REPRESENTING OR HOW IT EVEN OPERATES. >> Reporter: THIS BUSINESS HAS BEEN BILLING MEDICARE FOR DURABLE MEDICAL EQUIPMENT WHICH INCLUDES DEVICES LIKE WHEELCHAIRS AND BRACES. I'M WITH CNBC. WHAT IS THIS BUSINESS? THE WOMAN INSIDE SAID IT'S A MEDICAL SUPPLY STORE BUT HAS NOTHING TO DO WITH THE ACTUAL BUSINESS. SHE GIVES US A NUMBER FOR THE OWNER. I CALL. BUT IT RINGS AT THE DESK INSIDE. HI, THIS IS CONTESSA BREWER FROM CNBC. WE JUST TALKED A MINUTE AGO. WE EVENTUALLY REACH THE OWNER WEEKS LATER. HE SAYS THE EQUIPMENT IS ORDERED THROUGH ANOTHER COMPANY, AFTER THE PATIENT SEES A DOCTOR. HE REFUSES TO GIVE MORE INFORMATION. GOVERNMENT RECORDS SHOW THE COMPANY HAS BILLED MORE THAN $2 MILLION TO MEDICARE, MOSTLY FOR WOUND CARE. >> SOUTH FLORIDA WITHOUT QUESTION IS THE GROUND ZERO FOR HEALTH CARE FRAUD BUT IT'S ONLY ONE STATE. THERE ARE 49 OTHERS AND TERRITORIES WHERE THESE TYPES OF SCHEMES ARE OCCURRING. >> Reporter: A

Channel: NBC News

Views: 84,065

Keywords: Health, International News, Lester Holt, Making A Difference, NBC Nightly News, National News, News, Nightly News, U.S. News, breaking news, evening news, politics, world news

Id: Mr9kG9qMDbQ

Length: 3min 2sec (182 seconds)

Published: Sat Mar 11 2023