Twenty people have been arrested for heath insurance fraud after targeting children with cerebral palsy in what is believed to be the largest case of Medi-Cal health insurance fraud in California.
The Los Angeles Times reports that authorities have arrested 20 individuals after uncovering a $4.6 million Medi-Cal health insurance fraud scheme that took advantage of disabled patients by providing them with unlicensed in-home nursing care. This massive health insurance fraud is believed to be the largest of its kind in California.
According to the United States Attorney Thomas O'Brien, this Medi-Cal health insurance fraud was run by Medicare Plus Home Health Providers, a Santa Fe Springs-based company run by Priscilla Villabroza. Essentially, Villabroza would hire unlicensed individuals to treat patients in-home or at school. She would pay the unlicensed individuals between $8 to $12 per hour, then bill and receive reimbursement by Medi-Cal to the tune of between $20 to $35 an hour.
Sadly, there were about 75 victims of this Medi-Cal health insurance fraud, many of which were children with cerebral palsy and other developmental disabilities. Fortunately, none of the victimized patients suffered life-threatening injuries as a result of the substandard care provided by the unlicensed nursed who, to make matters worse, would steal identities in order to pull off this fraud.
Last year, Villabroza plead guilty to five counts of health insurance fraud and faces up to 50 years in prison at sentencing.
There are a total of 42 defendants named in the health insurance fraud indictment and the remaining 22 defendants are expected to turn themselves into authorities.
All told, this health insurance fraud netted approximately $4.6 million making it the largest in state history. "We believe that this is the largest single case alleging Medi-Cal fraud ever filed in the state of California," said United States Atty. Thomas O’Brien.
Written by Gabriel Dorman
Los Angeles, California
gabedorman@gmail.com
www.criminaldefenseduilawyer.com/blog/
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