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Fraudsters Overcharged Health Insurers $1.4 Billion: Indictment

June 29, 2020, 11:57 PM

Federal prosecutors indicted 10 people Monday in connection with an alleged $1.4 billion fraud scheme that made use of troubled rural hospitals to overcharge private health insurers for medical testing.

The conspirators, who included hospital managers, laboratory owners, billers, and recruiters, received around $400 million through the scheme, the Justice Department said.

The conspirators took over small rural hospitals, often in financial trouble, using management companies they owned and operated, according to the DOJ.

The conspirators would then bill private insurance companies through the rural hospitals for millions of dollars of expensive urinalysis drug tests and blood tests, according to...

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