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Wealth Advisor
Wealth Advisor

How You Know When Taxpayers Are Being Defrauded

CBS shines a light on a hospice scandal.

Sadly for taxpayers, Minnesota-size frauds are not necessarily confined to the Land of 10,000 Fakes. Rachel Gold, Laura Geller, Adam Yamaguchi and Graham Kates report for CBS News on the fraudsters who have exploited services intended to relieve suffering during the last stages of life:

Medicare is federally administered, and hospices must be certified for reimbursements. But the state issues the licenses for hospices to operate.

Three years ago, California’s state auditor sounded the alarm that Los Angeles County had seen a 1,500% increase in hospice companies since 2010 – more than six times the national average relative to its elderly population.

Auditors estimated LA County hospices overbilled Medicare by $105 million in a single year. The report called out notable red flags – key warning signs of fraud…

The CBS reporters list such signs, but one in particular does seem like reason for extra taxpayer concern:

High rates of terminally ill patients later discharged alive

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