Former Pennsylvania hospital worker convicted of insurance fraud

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A former employee at Aliquippa Community Hospital in Beaver County, Pa., must pay nearly $112,000 in restitution after she told her employer her boyfriend was actually her husband to secure the man health insurance.

Eleanor J. Murphy, 49, of Follansbee, W. Va., was sentenced Feb. 23 to seven years of probation after pleading guilty last month to a single count of insurance fraud, according to the Beaver County Times.

Murphy admitted to lying on her medical benefits form that her boyfriend, Michael LaSavage, was her husband to secure benefits for him when the hospital hired her in September 2006. Court records indicate the hospital never checked to confirm the information, the report said.

LaSavage retired from Weirton Steel, but lost his health insurance when the business went bankrupt in 2003, the Times reported.

An investigation found that between September 2006 and May 2008, Coventry Health Care paid about $112,000 in medical treatments for LaSavage, who was diagnosed with cancer in March 2008 and died two months later.

Investigators said since the couple was unmarried, Coventry should not have paid the claims.

Murphy, who is unemployed, was ordered by a judge to pay $100 a month in restitution, with the amount increasing if she finds work. She also must report her employment progress to her probation officer.

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