Healthcare fraud is a $60 billion industry. Fraud “rings” are popping up all over the country mainly because stealing from healthcare providers, patients and government run health programs is safer and easier than being a drug dealer. How can we deter criminals from stealing money from our already troubled healthcare system? Well, if the House of Representatives has anything to do with it, the proposed IMPROVE (Improving Medicare and Medicaid Policy for Reimbursements through Oversight and Efficiency) Act will hopefully provide enough barriers that criminals will find drug dealing/other crimes more lucrative.

The bipartisan bill would end the common practice of mailing reimbursement checks to post office boxes. However, we first should all be asking a very important question. Who thought it was responsible to send reimbursement checks to post office boxes in the first place? What reputable healthcare provider doesn’t have a permanent address where to send checks?

The Act will mandate that all government sponsored health programs pay healthcare providers and suppliers by using direct deposit. This certainly seems to be a step in the right direction and into the 21st century. Direct deposits will eliminate an easy way for criminals to get their hands on reimbursement checks, save the government money on stamps, envelopes, paper check etc., and don’t forget about the environment.

Congress, please say, “Yes,” to healthcare reform.

It was announced yesterday that Blue Cross and Blue Shield health plans recovered close to $350 million thanks to a very efficient 2008 anti-fraud investigation. The total money recovered added up to a 43% increase from the previous year. Fraud activities included false claims, improper billing practices and non-covered procedures.

WellPoint – an independent licensee of Blue Cross and Blue Shield – also announced that they recovered $75 million due to waste, fraud and abuse in their system. According to their estimates, for every $1 spent on investigating fraud the company saves or recovers $11.

Read full article.

If insurance companies can find ways to combat waste, fraud and abuse in their systems, Medicare and Medicaid need to find more productive methods. An estimated $68 billion every year – or 3% – of all healthcare expenditures is stolen. The government could insurance millions with that “extra” money.