Medicare Wastes Money, Approves Fake Wheelchair Suppliers

August 5, 2008

The Government Accountability Office decided to run a test on Medicare, and its ability to pick up on fake companies.  The GAO was able to successfully set up fake wheelchair suppliers, and get them approved for Medicare billing.Washington (ChattahBox) – The Government Accountability Office decided to run a test on Medicare, and its ability to pick up on fake companies. The GAO was able to successfully set up fake wheelchair suppliers, and get them approved for Medicare billing.

The GAO set up two fake companies, which aimed to supply equipment such as wheelchairs.

These two companies though were fake, with no clients, no inventory, or anything like that.

The GAO found that over time, they were able to actually bill Medicare successfully, as the fake companies were approved.

Medicare has stated that they have put out $1 billion in improper payments in the past year, mainly revolving around devices to help elderly and disabled people.

The GAO report shows that holes still exist in the Medicare billing process.


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