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(last updated on February 13, 2008)

Cornyn co-sponsors bill to crack down on Medicare fraud

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 recently 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 $10,000 to $20,000 per item or service claimed);

· Quadruple the criminal fines from 25,000 to 100,000;

· Increase the bond required to become a DME provider from $50,000 to $500,000.