Is health insurance fraud a major problem in the United States?

Health insurance fraud is a very major problem in the United States. In 2007, states devoted a cumulative $147,738,214 to fight health insurance fraud. 1,694 total state employees opened 31,654 cases of health insurance fraud. 4,848 arrests and 4,228 convictions were made.

Health care fraud leads to extreme waste. In 2000, fraud, errors, and waste led to $11.9 billion in unnecessary costs in Medicare alone. Additionally, ten percent of all health care expenditures are fraudulent.

Clearly, fraud is a major problem in the United States, and it is wrong. But insurance companies still function and save $11 for every $1 lost to fraud and will survive and continue to fight fraud. And, it is important for people to have health insurance.

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