$4 Billion in Fraudulent Medicare Charges Found in 2009

Levinson outlined five agency strategies to help its investigations weed out more fraud:

1. Scrutinize individuals and entities that want to participate to make sure they are qualified providers, possibly with unannounced checks. In 2006 and 2007, the agency discovered that almost 600 of 2,500 Medicare durable medical equipment suppliers did not maintain a physical facility or maintain a staff as required.

2. Establish payment methodologies that are reasonable and responsive to the market and medical practice; for example, capping oxygen concentrator payments at 13 months instead of 36 months.

3. Assist healthcare providers and suppliers to comply with program requirements and make them adopt compliance programs as a condition of participation.

4. Vigilantly monitor the programs for evidence of fraud, waste, and abuse, through rapid detection and the use of data and technology and cooperation with private insurers as well as federal and state agencies.

5. Respond swiftly to detected fraud with quick imposition of sufficient punishment to deter others.

Levinson added that through the OIG's Health Care Fraud Prevention and Enforcement Action Team (known as HEAT), strike forces have expanded from two locations in Miami and Los Angeles, to seven last year, including Houston, Detroit, Brooklyn, Tampa, and Baton Rouge. The 2011 budget would further expand the strike force to 13 other locations, with a cost of $25 million and an additional 130 employees.