Medicare is cracking down on companies which supply government patients with certain kinds of medical equipment, such as wheelchairs, walkers and oxygen equipment and supplies. It is estimated that fraud involving these supplies costs the government more than one billion dollars per year. New rules are being formulated and put in place to reduce fraud and fraudulent costs.

These rules are already being tested in ten of the seventy major metropolitan areas in which they will apply. Not only will the government benefit by stopping fraud in this area, but patients, who usually bear approximately 20% of the costs, will also benefit from the lower costs. "We expect the program will deter fraud by eliminating unscrupulous providers from the competitive billing process," said Kerry Weems, acting administrator of the Centers for Medicare and Medicaid Services, at a news conference in Los Angeles. Fraud and waste account for 10 to 20 percent of Medicare expenses.
Fraudulent equipment vendors usually prey on senior citizens, persuading them to hand over their Medicare numbers for equipment and clinic visits which they did not need. The new rules will require vendors to be screened by the agencies to whom they are submitting bids to be sure that they are legitimate business. We hope that these rules will stop Bad Businesses from bilking the elderly and the government alike.
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