Medicare, Medicaid managed care gets scrutiny for fraud

As the government increases the private sector's role in delivering Medicare and Medicaid, new kinds of fraud are cropping up. Managed-care fraudsters profit by, among other means, shortchanging patients or physicians to cut costs while collecting fees from the government. They might refuse to enroll unhealthy people, skimp on paying doctors or deny patients care. As a result of the trend, regulators are ramping up scrutiny of the managed-care industry.