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Financial Scams in Home Health Care

February 19, 2015

Avoid Financial Scams in Home CareA sad trend that has developed over the last decade is the prevalence of financial fraud by home health care providers. Each year, hundreds of millions of Medicaid dollars are paid out for home care services that were unnecessary or weren’t provided at all. In 2014, it is estimated that fraudulent home care charges totaled $60 million of taxpayer dollars in Minnesota alone.

How does this happen? In most situations the personal care assistant or home care agency responsible for providing care will exaggerate the amount of service provided or make it up entirely. With no effective way to monitor the validity of these billings, Medicaid or the insurance company pays out the money in good faith. All the while, the patient is unaware that he or she is being taken advantage of.

Why does this happen? In short, the reward often outweighs the risks for caregivers looking to make an extra buck. Last year, The Star Tribune reported that, “Of the 425 home caregivers and agencies notified of wrongful billing practices since 2008 in Minnesota, just one in four were ultimately convicted.” Over the last decade, Minnesota’s Medicaid program has exploded while fraud referrals have stayed stagnant or dropped. Without proper monitoring, legislation, investigation, and enforcement, these crimes will likely continue.

What is being done? Six states now require electronic verification whenever a caregiver visits a patient. This process helps deter fraud by eliminating easily falsified paper timesheets. Federal data mining tools are also helping state governments monitor Medicaid claims for fraud. Minnesota is not participating in any of these practices yet.

Andre Best, founder of Best Home Care, has been fighting against home care fraud for years. Best has spoken with legislators about the need for better monitoring of home care services and has even developed software to help address this problem. His smartphone application creates a digital record of all services billed to the state and documents the care that the patients receive. Best Home Care currently uses this app and Best hopes other home care agencies will join as well.

Learn more about our founder’s fight against fraud as well as options for proven care services by contacting our trusted home care agency today.

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