Published: 02-12-08
Legislation protects taxpayers legitimate Medicare users by increasing penalties for fraud and abuse
WASHINGTON—U.S. Sen. John Cornyn joined Sens. Mel Martinez R-Fla. and several other Senators in introducing a bill to combat Medicare fraud and abuse. The legislation entitled The Medicare Fraud Prevention Act of 2008 would increase the maximum criminal sentence double civil fines and quadruple criminal fines. It also aims to deter criminal organizations from committing Medicare fraud.
“Each year millions of dollars of taxpayer money go down the drain because of Medicare fraud and abuse. That money should instead go toward reducing costs and premiums for all Americans” Sen. Cornyn said. “We should do everything in our power to eliminate fraud and abuse. By increasing penalties for offenders this bill takes important steps to protect taxpayers and legitimate Medicare recipients.”
The Medicare Fraud Prevention Act of 2008 amends the Social Security Act to provide increased sentences for individuals convicted of felonies involving fraud and abuse under the Medicare program and raises the amount of the surety bond required for suppliers of durable medical equipment.
Specifically the legislation would:
• Increase the max criminal sentence from 5 to 10 years;
• Double all civil fines under Medicare Fraud provisions (typically $10000 to $20000 per item or service claimed);
• Quadruple the criminal fines from 25000 to 100000;
• Increase the bond required to become a DME provider from $50000 to $500000.
Sen. Cornyn serves on the Armed Services Judiciary and Budget Committees. In addition he is Vice Chairman of the Senate Select Committee on Ethics. He serves as the top Republican on the Judiciary Committee’s Immigration Border Security and Refugees subcommittee and the Armed Services Committee’s Airland subcommittee. He served previously as Texas Attorney General Texas Supreme Court Justice and Bexar County District Judge.
