Originally published September 12 2005
Michigan attorney general battles Medicaid fraud
by Mike Adams, the Health Ranger, NaturalNews Editor
Michigan Attorney General Mike Cox is fighting against Medicaid fraud in the state, seeking to join in national lawsuits and pushing for state legislation that would award individuals who successfully sue health care providers for Medicaid fraud attorney fees and at least 15 percent of the settlement.
A state team made up of 36 lawyers, investigators and experts is working to fight fraud that drains millions of dollars each year from the state's Medicaid program.
The health care fraud unit recovers only a fraction of what's stolen each year through phony claims to Medicaid, a joint state-federal program that covers health care costs for the poor, The Detroit News reported Sunday.
Michigan Attorney General Mike Cox is intensifying efforts to weed out fraud.
In recent months, several companies in Michigan have been charged with stealing through false claims for services, prescription drugs and dental care.
"People see that there's a lot of money in health care, and a whole lot of people want to prey on that system," Cox said.
"We have to go after the bigger cases, to be the big stick that whacks people and deters others."
To help, Cox is pushing legislation being considered by the state House that would award people who successfully sue thieving health care providers for Medicaid fraud at least 15 percent of the settlement plus attorney fees.
It is unclear exactly how much money is lost to fraud.
National statistics cited by Cox estimate that every state loses 3 percent to 10 percent of its Medicaid budget to fraud -- or about $225 million to $750 million in Michigan.
But Michigan Medicaid Director Paul Reinhart said the actual effect on Michigan's budget it less.
According to Reinhart, about $1.6 billion of the state's Medicaid budget is susceptible to fraud.
The remaining $5.9 billion is dished out to managed care organizations, nursing homes and other operations that charge the state a fixed rate for services.
Reinhart said paying companies to administer Medicaid care has helped the state.
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