Amtrak became the victim of an Amtrak health care fraud scheme, after several employees conspired with medical providers to submit false insurance claims, resulting in losses exceeding $11 million. This is reported by the railway transport news portal Railway Supply.

Amtrak health care fraud uncovered a $12 million scheme involving 119 employees and corrupt medical professionals, yet over half of those implicated are still employed at the national rail company
Amtrak employees pocketed wads of cash for allowing medical providers to file bogus claims for ghost treatments the employees never received. Christopher Sadowski

Federal prosecutors revealed that from January 2019 to June 2022, the employees allowed unethical providers to use their insurance details in exchange for thousands of dollars in cash kickbacks.

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The fraudulent claims were made for treatments that were medically unnecessary or never provided. Amtrak unknowingly reimbursed these fake charges through its employee health insurance plan.

In total, nine individuals were involved, including four external co-conspirators. All have pleaded guilty to conspiracy to commit health care fraud.

Amtrak Health Care Fraud Scheme Exploited Internal Access

Investigators found that the employees misused their access to Amtrak’s benefits program, enabling false claims to pass through undetected. Providers involved included acupuncturists and podiatrists.

As a result, Amtrak’s health care fund suffered significant financial damage. Prosecutors stated that no services were delivered in many of the billed cases.

U.S. Attorney Alina Habba stressed that the fraud undermined the integrity of a system designed to support employees. She confirmed that the company itself bore the full financial burden of the scheme.

Sentencing Follows Exposure of Amtrak Health Care Fraud

Each guilty party now faces up to 10 years in federal prison and a $250,000 fine. Sentencing hearings are set to take place between July and October.

The Amtrak health care fraud case highlights the vulnerability of employer-funded insurance programs to insider abuse. Prosecutors call for tighter internal controls and greater oversight to prevent similar crimes.

Amtrak has not been accused of wrongdoing but remains the primary victim of this multimillion-dollar fraud operation.

Source: www.wusa9.com

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