Medicaid Drug Fraud: Drug Diversion Schemes and "Pill Mills"A pill millÓ operates when physicians, clinic owners, & pharmacists collect to defraud Medicaid by prescribing & distributing drugs mainly to obtain reimbursement. Patients are often knowing participants in these schemes, allowing use of their Medicaid recipient numbers for billing purposes in exchange for cash, drugs, or other inducements. This report assesses the extent of the drug diversion problem, the reasons it persists, & what actions are being taken to bring it under control. Charts & tables. |
From inside the book
Results 1-5 of 10
Page 4
... middlemen , some of whom transferred money overseas through the Bank of Credit and Commerce International ( bcci ) . Specific fraud schemes are summarized in figure 1 . E 4Zantac is an ulcer medication . It heads the list of the most ...
... middlemen , some of whom transferred money overseas through the Bank of Credit and Commerce International ( bcci ) . Specific fraud schemes are summarized in figure 1 . E 4Zantac is an ulcer medication . It heads the list of the most ...
Page 5
... middlemen , who in turn resold them to pharmacies . Medicaid billings by this group during the period of investigation exceeded $ 8 million . Merchandising The state of Florida prosecuted a Florida pharmacy owner and two clerks for ...
... middlemen , who in turn resold them to pharmacies . Medicaid billings by this group during the period of investigation exceeded $ 8 million . Merchandising The state of Florida prosecuted a Florida pharmacy owner and two clerks for ...
Page 13
... middlemen distributors " : clinics pay a fee to patient brokers to locate Medicaid enrollees , often directing them to target groups of homeless people and drug addicts . Clinic personnel draw blood from these " patients " and provide ...
... middlemen distributors " : clinics pay a fee to patient brokers to locate Medicaid enrollees , often directing them to target groups of homeless people and drug addicts . Clinic personnel draw blood from these " patients " and provide ...
Page 18
... middlemen , and even physicians not enrolled in Medicaid . 10 Many schemes involve third - party insurers other than Medicaid , necessitating coordination between the Mpcu and agencies with jurisdiction over the other scheme ...
... middlemen , and even physicians not enrolled in Medicaid . 10 Many schemes involve third - party insurers other than Medicaid , necessitating coordination between the Mpcu and agencies with jurisdiction over the other scheme ...
Page 22
... middlemen , foreign nationals , and off - shore money transfers . Figure 1.3 depicts the overall structure of such a network as revealed by our analysis to date . ། " We compiled a list of 68 suspect labs based on HCFA and New York ...
... middlemen , foreign nationals , and off - shore money transfers . Figure 1.3 depicts the overall structure of such a network as revealed by our analysis to date . ། " We compiled a list of 68 suspect labs based on HCFA and New York ...
Common terms and phrases
abused drugs action Appendix assets audit BCCI charges Civil Monetary Penalties CMPL Controlled Substances Controlled Substances Act court criminal curb defraud Medicaid Department of Justice detection Diversion Persists Divert Drugs drug benefit Drug diversion schemes Drug Enforcement Administration drug utilization review Economic Incentives enrollment EOMBS example Extent and Persistence False Claims Act federal agencies Federal Initiatives focused Fraud Control Units fraudulent HCFA health care fraud high-volume providers identify individuals Inspector involved Medicaid agencies Medicaid billings Medicaid drug diversion Medicaid Fraud Control Medicaid Prescription Drug Medicaid program Medicare MFCU officials middlemen million noncontrolled numbers obtained offenders organized network participants patient brokers percent Persistence of Medicaid pharmacies pharmacist pill mill prescribing physician Prescription Drug Diversion prescription drug fraud prescription forms probation problems professional sanctions program losses prosecution pursued pursuit recover losses referred Regional Office require Schedule II scrips state's suspect labs targeting Texas up-front controls Utilization Review York
Popular passages
Page 1 - At the federal level, the Health Care Financing Administration (HCFA) in the Department of Health and Human Services (HHS) administers...
Page 42 - In the final analysis, the commitment and institutional support of the secretary of the Department of Health and Human Services, the Office of Management and Budget, and the Congress are all essential to the successful implementation of a departmental comprehensive integrated health care statistics strategy.
Page 8 - One key element of such a strategy might be the designation of a unit within HCFA responsible for (1) conducting continuing evaluations of state initiatives...
Page 2 - For example, some pharmacists routinely added medications to customers' orders, keeping the extras for themselves or to sell to others. Clinics inappropriately provided Medicaid recipients with completed prescription forms (scrips) that were then traded for merchandise from local pharmacies or sold on the street to the highest bidder. Some pills costing 50 cents at the pharmacy were resold for as much as $85.
Page 3 - The drug fraud took many forms, including pharmacists who routinely added medications to customers' orders, keeping the extras for themselves or to sell to others; clinics that inappropriately provided Medicaid recipients with completed prescription forms (scrips) that were then traded for merchandise from local pharmacies or sold on the street to the highest bidder; and typical pill mill schemes in which recipients, in exchange for abusable drugs, allowed physicians, pharmacies, and labs to use...
Page 2 - ... by the Health Care Financing Administration ("HCFA") in the Department of Health and Human Services ("HHS").
Page 35 - Under the act controlled substances (narcotics and dangerous drugs) have been divided into five schedules on the basis of their potential for abuse, accepted medical use, and accepted safety under medical supervision. Substances included in schedule I are those with a high potential for abuse, no accepted medical use, and a lack of accepted safety. Those in schedules II through V decrease in potential for abuse and increase in accepted medical use. The placement of a drug in any one of these schedules...
Page 1 - Medicaid, the largest government health program for the poor, is a logical target of drug diversion because it typically includes prescription drugs in its covered services. It accounts for 80 percent of all federal spending on prescription drugs. In 1991, prescription drugs accounted for 7 percent of Medicaid spending — more than physicians' services, more than any noninstitutional benefit provided by the program.
Page 32 - The Chairman of the House Select Committee on Narcotics Abuse and Control testified...
Page 1 - In Florida and Texas, the recent rate of increase has been even greater, with expenditures more than doubling between 1987 and 1991.' The incentive to abuse the Medicaid drug benefit is considerable: some prescription drugs have psychological or physical effects similar to those of illicit drugs; others have substantial monetary value, and profiteers can divert them for resale through illicit channels. The pursuit of drug diversion...