Health Fraud on the Rise

Jul 6, 2009

It’s interesting that people who commit health care fraud think they are doing nothing wrong and that those big companies have lots of money and won’t miss any.

While it’s an interesting attitude, to rip off a larger corporation for money that people don’t think they need, it is indeed hurting people. After all, it’s not just the companies that are getting ripped off; it’s the people who these large corporations ultimately serve that are also getting the short end of the stick.

Insurance scams in the US alone run a tab of roughly $80 billion a year. Eighty billion is not exactly chump change to anyone. Even if this figure is whittled down to what this costs per individual served by an insurance company, the figure is still relatively high, coming in at about $880 per person.

The funny thing is, those who are ripping off the system for extra money, are also scamming themselves as well. So, while they may think they are getting away with something smart and profitable, it often works out that isn’t the case. It certainly isn’t the case when they inevitably get caught either.

Unfortunately, due to rapid advancements in technology, insurance frauds are getting harder and harder to catch. This may be a boon to those who perpetrate this type of crime, but be forewarned that methods to track this type of fraud are also growing by leaps and bounds.

The most common type of insurance fraud is found in the health care system and that comes with a tab of about $30 billion a year. In this area there are provider fraud and member fraud. Let’s take a quick look at what member fraud may involve. This would be when you choose to deceive your insurance company by not declaring something in order to get treatment. Provider fraud is if a doctor or another health professional bills for a service they did not provide.

The bottom line here is that insurance fraud is illegal and the penalties tend to be stiff when someone is caught and convicted of this crime. However, having said that, everyone, no matter what they have been accused of, is entitled to a criminal defense. Just because they may have been charged with billing for services they didn’t render does not mean they were the responsible party for doing so, nor does it mean they were aware this was happening. Beware of judging a situation before you know all the details.

Daniel Wannamaker is a board certified criminal law specialist and has 24 years of criminal trial experience with proven results as a Dallas criminal defense lawyer practicing in Austin criminal defense and Houston Texas. To learn more about Dallas criminal defense lawyer, Houston criminal defense lawyer, Austin criminal defense lawyer, visit