Obama Administration Announces Ground-Breaking Public-Private Partnership to 
Prevent Health Care Fraud

On July 26, HHS Secretary Kathleen Sebelius and Attorney General Eric Holder 
announced the launch of a ground-breaking partnership among the federal 
government, State officials, several leading private health insurance 
organizations, and other health care anti-fraud groups to prevent health care 
fraud. This voluntary, collaborative arrangement uniting public and private 
organizations is the next step in the Obama administration's efforts to combat 
health care fraud and safeguard health care dollars to better protect taxpayers 
and consumers.

The new partnership is designed to share information and best practices in 
order to improve detection and prevent payment of fraudulent health care 
billings. Its goal is to reveal and halt scams that cut across a number of 
public and private payers. The partnership will enable those on the front lines 
of industry anti-fraud efforts to share their insights more easily with 
investigators, prosecutors, policymakers and other stakeholders. It will help 
law enforcement officials to more effectively identify and prevent suspicious 
activities, better protect patients' confidential information and use the full 
range of tools and authorities provided by the Affordable Care Act and other 
essential statutes to combat and prosecute illegal actions.

One innovative objective of the partnership is to share information on specific 
schemes, utilized billing codes and geographical fraud hotspots so that action 
can be taken to prevent losses to both government and private health plans 
before they occur. Another potential goal of the partnership is the ability to 
spot and stop payments billed to different insurers for care delivered to the 
same patient on the same day in two different cities. A potential long-range 
goal of the partnership is to use sophisticated technology and analytics on 
industry-wide healthcare data to predict and detect health care fraud schemes.

 The Executive Board, the Data Analysis and Review Committee, and the 
Information Sharing Committee will hold their first meeting in September. Until 
then, several public-private working groups will continue to meet to finalize 
the operational structure of the partnership and develop its draft initial work 
plan.

The partnership builds on existing tools provided by the Affordable Care Act, 
resulting in:

§  Tougher sentences for people convicted of health care fraud. Criminals will 
receive 20 to 50 percent longer sentences for crimes that involve more than $1 
million in losses;

§  Enhanced screenings of Medicare and Medicaid providers and suppliers to keep 
fraudsters out of the program.

§  Suspended payments to providers and suppliers engaged in suspected 
fraudulent activity.

The administration's efforts to date have already resulted in a record-breaking 
$10.7 billion in recoveries of health care fraud over the last three years. For 
more information on this partnership and the Obama administration's work to 
combat health care fraud, please visit the Stop Medicare 
Fraud<http://www.stopmedicarefraud.gov/> web page.

Full text of this excerpted CMS press 
release<http://www.cms.gov/apps/media/press/release.asp?Counter=4413&intNumPerPage=10&checkDate=&checkKey=&srchType=1&numDays=3500&srchOpt=0&srchData=&keywordType=All&chkNewsType=1%2C+2%2C+3%2C+4%2C+5&intPage=&showAll=&pYear=&year=&desc=&cboOrder=date>
 (issued July 26).



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