Miami, Fla. police recently arrested a total of 21 people involved in an insurance fraud scam that involved four medical clinics and several physicians. The investigation is still on-going, but authorities anticipate more arrests as they dig deeper into this fraud case.
The defendants are accused of staging car accidents and submitting fraudulent medical claims. Some of those arrested allegedly recruited individuals to fake the accidents. Doctors, who were also involved in the scam, would evaluate the accident victims and bill Medicare for health treatments that never took place. Both the conspirators and the recruited accident victims would take a cut of the profits. Authorities believe doctors, medical assistants and patients were all involved.
While it's not clear yet how much money the suspects made from this particular scam, authorities estimate fraud costs the insurance industry around $80 billion a year. Five hundred people are arrested each year in Florida alone for medical fraud based on staged car accidents.
Fraudulent insurance claims affect the entire health care system and society as a whole. It's not just an attack on insurance companies. Policyholders and consumers are charged higher premiums to compensate for fraud. That's why most states punish insurance fraud harshly. Additionally, health care fraud is a federal offense. Thus, the suspects in this case will most likely face state and federal felony charges.
Many variables go into determining punishment for insurance fraud, including the state in which the offense happened, the amount of money stolen and the defendant's criminal history. If you or someone you know has been accused of insurance fraud, gather as much information as you can and consult with a criminal defense attorney as soon as possible. Having a capable and experienced lawyer to advocate for you can drastically affect your future.