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How Medicaid Fraud Affects the Taxpayer

Medicaid is a federal- and state-funded health care program for low-income and disabled individuals. Unfortunately, some dishonest providers commit Medicaid fraud for personal gain, resulting in in higher taxes and reduced medical care for many taxpayers.

  1. Fraud Types

    • Medicaid fraud may include billing for services not provided or not needed, double-billing, kickbacks for referrals, processing claims for nonexistent patients and other illegal practices.

    Taxes

    • According to the Indiana Attorney General, taxpayers end up paying higher taxes to cover Medicaid funds depleted through fraud. Investigations and lawsuits resulting from Medicaid fraud also cost the taxpayers money.

    Medicaid Recipients

    • Taxpayers receiving Medicaid may have reduced health care benefits due to lost funds. Additionally, some dishonest providers commit Medicaid fraud by reducing the quality of treatment to Medicaid recipients as a way to cut costs.

    Considerations

    • Not only does Medicaid fraud directly affect taxes and Medicaid funding, funds from other government agencies may be reduced or diverted to cover losses.

    Reporting Medicaid Fraud

    • Individuals should report fraud to a local Medicaid agency, their State Attorney General or by calling the National Fraud Hotline at 800-447-8477.

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