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$10.6 billion billed: Fake catheter claims using a million stolen identities
Prosecutors say one network billed Medicare $10.6 billion for medical supplies nobody needed or received.
FraudBadPublic receipt
Medicare
Medicare
- Fraudulent claims billed to Medicare$10.6B1
- Stolen identities used1M+ Americans, all 50 states1
- Claims scheduled for payment≈$4.45B1
- Stopped by Medicare before paymentAll but ≈$41M1
- Paid by Medicare supplemental insurers≈$900M1
- Defendants charged191
- Recovered so far████████████████
fraudbad.comNo taxation without receipts
What happened
Prosecutors say a transnational ring bought medical supply companies and used them to bill Medicare for urinary catheters and other equipment. They used the stolen identities of more than a million Americans.
It was the largest scheme in the Justice Department's June 2025 health care fraud takedown, which charged 324 people over $14.6 billion in alleged fraud.
Why nobody caught it
- Each claim used a real person's Medicare number, so one at a time they looked routine.
- Medicare stopped most of the money. Supplemental insurers still paid out about $900 million.
How sure are we?
Charged
Prosecutors filed charges. These are accusations; everyone charged is presumed innocent until proven guilty.
These are charges. Everyone charged is presumed innocent until proven guilty in court.
Sources
- National health care fraud takedown results in 324 defendants charged in connection with over $14.6 billion in alleged fraudU.S. Department of Justice · Jun 30, 2025
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