WASHINGTON--The Department of Justice and the Department of Health and Human Services are joining forces to combat Medicare and Medicaid fraud, they announced Wednesday, and one of their first efforts will be to target durable medical equipment fraud.           
 
Attorney General Eric Holder and Department of Health and Human Services Secretary Kathleen Sebelius said they will expand the current DME anti-fraud operation in South Florida and Los Angeles to Detroit and Houston.
 
In addition, Holder and Sebelius said they have formed the Health Care Fraud and Prevention and Enforcement Action Team, which will concentrate on coordinating federal and state efforts to crack down on both Medicare and Medicaid fraud.
 
Members of HEAT will include officials of both agencies, state Medicaid Fraud Control units and local police agencies, the officials said.
 
“With this announcement, we raise the stakes on health care fraud by launching a new effort with increased tools, resources and a sustained focus by senior-level leadership,” Holder said in a press release.
 
Sebelius acknowledged that the majority of DME providers adhere to the law. “Most providers are doing the right thing and providing care with integrity,” she said. “But we cannot and will not allow billions of dollars to be stolen from Medicare and Medicaid through fraud, waste and serious abuse of the system. It’s time to bring the fight against fraud into the 21st century and put the resources on the streets and out into the community to protect the American taxpayers and lower the cost of health care.”
 
In addition to expanding the anti-fraud strike force project to Detroit and Houston, officials said they will also build on the Centers for Medicare and Medicaid Services’ demonstration project in South Florida that requires site visits to potential DME suppliers to ensure their legitimacy.
 
The two agencies will also increase Medicare compliance training for providers, beef up data sharing between CMS and law enforcement and boost monitoring of Medicare Parts C and D to ensure compliance.
 
According to a BNA Health Care Daily report, the agencies will use funds from the Health Care Fraud and Abuse Control account to fund their work, supplemented by existing agency appropriations. Another $311 million will come from increased funding for Medicare and Medicaid oversight that is included in the president’s 2010 budget, Sebelius said.
 
BNA also reported that Assistant Attorney General Lanny Breuer told the Senate Judiciary Subcommittee on Crimes and Drugs on Wednesday that DME claim submissions to Medicare have dropped $1.75 billion and actual DME payments have fallen by $334 million since the strike force began operating in South Florida two years ago.
 
Holder and Sebelius also urged the American people to visit a new Web site www.hhs.gov/stopmedicarefraud or call 800/HHS-TIPS (800/447-8477) to report suspected Medicare fraud.