DOJ > Medicaid/Healthcare Fraud Unit > What is Medicaid Fraud?
  • Billing for services not rendered: A provider bills Medicaid for a procedure or service that was not actually provided.
  • Double Billing: A provider bills Medicaid twice for the same procedure or service.
  • Billing for unnecessary services: A provider misrepresents the diagnosis and symptoms on patient records and billing invoices in order to obtain payment for unnecessary services.
  • Drug Substitution: A pharmacist fills a recipient's prescription with a generic drug, but bills Medicaid for a higher cost brand name drug.
  • Kickbacks: A provider offers or pays a kickback to induce someone to refer Medicaid recipients to that provider as patients or clients. Examples of kickbacks include cash, vacations, and gifts.
  • Supplemental Charges: A provider charges a Medicaid recipient for a service which is covered by Medicaid and should be billed to Medicaid, and then charges the recipient the difference between the provider's usual fee and what Medicaid pays.
  • Inflating the Usual and Customary Charges: A provider charges Medicaid more than their usual and customary charge for the same product or service billed to other insurers and the public. A provider might inflate the cost of the procedure, service or goods provided.
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