Fifty-three people in three states were indicted as part of a scheme to submit more than $50 million in false Medicare claims in an ongoing effort by federal authorities to crack down on such fraud.

The federal grand jury indictments and subsequent arrests of individuals in Detroit, Mich., Miami, Fla., and Denver, Colo., June 24 are part of the Health Care Fraud Prevention & Enforcement Action Teams (HEAT), a joint effort by the U.S. Department of Health and Human Services and the Department of Justice to prevent health care fraud.

Charges for the 53 linked to the alleged fraud include conspiracy to defraud the Medicare program, criminal false claims and violations of the anti-kickback statutes, according to the Department of Justice.

Eric Holder

U.S. Attorney Eric Holder said those arrested include 19 patients-beneficiaries, 16 company owners and executives, eight medical personnel, six employees and four doctors tied to the alleged scheme.

HEAT Strike Force operations in Detroit identified two primary areas in which the schemes were allegedly orchestrated: infusion therapy and physical/occupational therapy providers.

The defendants participated in schemes to submit Medicare claims for treatments that were medically unnecessary and often times, never provided, according to the indictments. In many cases, the indictments allege that beneficiaries accepted cash kickbacks in return for allowing providers to submit forms saying they had received the treatments.

Holder said in one case, it is alleged the defendants created a healthcare company, submitted paperwork to obtain required Medicare provider number, hired recruiters, and gave them cash to recruit patients to participate in the scheme. It is further alleged that they hired staff, including medical billers and assistants, to appear legitimate, Holder said, and then paid patients kickbacks.

The attorney general said the charges and arrests are proof that “we will strike back against those whose fraudulent schemes not only undermine a program upon which 45 million aged and disabled Americans depend, but which also contribute directly to rising health care costs that all Americans must bear.”

“The vast majority of doctors, patients, and medical companies do the right thing and work with the Medicare program to provide access to medical services,” Holder said in a statement. “To those who work diligently and ethically to provide medical care through the Medicare program, we will work with you to root out the few who corrupt the system and taint the good reputations of health professionals everywhere.”

In May, Holder and HHS Secretary Kathleen Sebelius announced the expansion of the HEAT Strike Force into Detroit and Houston to build upon existing partnerships between their two agencies to reduce fraud and recover taxpayer dollars.

Sebelius said the Obama Administration is “committed to turning up the heat on Medicare fraud and employing all the weapons in the federal government’s arsenal to target those who are defrauding the American taxpayer.”

“Every dollar we can save by stopping fraud can be used to strengthen the long-term fiscal health of Medicare, bring down costs and deliver better service to Medicare beneficiaries,” Sebelius said.