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Texas Doctor Gets 10-Year Prison Term for $54 Million Medicare Fraud

The doctor allegedly authorized tests and equipment without seeing or speaking to the patients, prosecutors say.

Epoch Times Report by Epoch Times Report
November 4, 2024
in Health & Fitness, Public Safety, Regions
0
Texas Doctor Gets 10-Year Prison Term for $54 Million Medicare Fraud

(FILES) In this file photo taken on September 13, 2017 a member of the audience holds up a placard as US Senator Bernie Sanders, Independent from Vermont, discusses Medicare for All legislation on Capitol Hill in Washington, DC. - Having a health insurance card in America is no guarantee of medical care without the risk of financial ruin. One must take care to choose a doctor or hospital that is part of a pre-approved network. Estimate how much would be paid out of pocket after hospital bills that can reach tens of thousands of dollars. And, for Americans covered by their employers, be careful about any change in jobs and try to avoid risky gaps in health insurance coverage.Vermont Senator Bernie Sanders, who came up with the idea, California Senator Kamala Harris and New York Senator Kirsten Gillibrand are among those calling for "Medicare for all," or offering everyone in the nation the type of public insurance offered to those over 65, a program in existence since the 1960s. (Photo by JIM WATSON / AFP) (Photo credit should read JIM WATSON/AFP via Getty Images)

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By Naveen Athrappully
Updated: 11/1/2024

A doctor from Texas was sentenced to over 10 years in prison on Oct. 29 for being involved in a scheme to defraud Medicare, according to the U.S. Department of Justice (DOJ).

Daniel R. Canchola, 54, of Flower Mound, signed doctor’s orders for durable medical equipment (DME) and cancer genetic testing despite knowing these orders “were used to submit false and fraudulent claims to Medicare,” said an Oct. 29 statement from the department. “From August 2018 through April 2019, Canchola received approximately $30 in exchange for each doctor’s order he signed authorizing DME and cancer genetic test orders that were not legitimately prescribed, not needed, or not used—totaling more than $466,000 in kickbacks.”
The Medicare beneficiaries for whom Canchola prescribed genetic testing and DME were “targeted by telemarketing campaigns and at health fairs,” the DOJ stated. The individuals were “induced to submit to the cancer genetic testing and to receive the DME regardless of medical necessity.” The doctor never saw, spoke to, or treated the patients.

In total, $54 million worth of false and fraudulent claims were submitted to Medicare using the doctor’s orders.

In October 2022, Canchola pleaded guilty to a conspiracy to commit wire fraud. In addition to 10 years and one month in prison, he will also have to pay $34 million in restitution for his role in the scheme.

The prosecution was handled by the DOJ Criminal Division’s Fraud Section, which oversees the Health Care Fraud Unit. The unit is tasked with prosecuting fraudulent activities targeting health care benefit programs like Medicare and Medicaid.
Earlier in June, the Justice Department announced charges against 193 individuals, including 76 doctors, nurse practitioners, and other licensed medical professionals for allegedly taking part in fraudulent schemes that involved more than $2.75 billion in false claims.

Four of the individuals allegedly filed false and fraudulent claims to Medicare for amniotic wound grafts used on Medicare patients. These claims totaled $900 million, with Medicare ending up paying over $600 million in the scheme, according to the Justice Department.

Thirty-six people were charged in connection with another scam, allegedly submitting more than $1.1 billion in fake claims to Medicare.

The Health Care Fraud Unit’s Data Analytics Team supported these investigations.

(FILES) In this file photo taken on September 13, 2017 a member of the audience holds up a placard as US Senator Bernie Sanders, Independent from Vermont, discusses Medicare for All legislation on Capitol Hill in Washington, DC. – Having a health insurance card in America is no guarantee of medical care without the risk of financial ruin. One must take care to choose a doctor or hospital that is part of a pre-approved network. Estimate how much would be paid out of pocket after hospital bills that can reach tens of thousands of dollars. And, for Americans covered by their employers, be careful about any change in jobs and try to avoid risky gaps in health insurance coverage.Vermont Senator Bernie Sanders, who came up with the idea, California Senator Kamala Harris and New York Senator Kirsten Gillibrand are among those calling for “Medicare for all,” or offering everyone in the nation the type of public insurance offered to those over 65, a program in existence since the 1960s. (Photo by JIM WATSON / AFP) (Photo credit should read JIM WATSON/AFP via Getty Images)

Medicare Scams

According to an October 2023 post by the advocacy group National Council on Aging, Medicare fraud usually increases during the program’s Open Enrollment Period between Oct.17 and Dec. 7. This is the time when beneficiaries review and change their health coverage.

“With a Medicare scam, criminals pretending to be from Medicare or another known organization try to trick a beneficiary into sharing their Medicare or Social Security number,” said Brandy Bauer, former Director of NCOA’s MIPPA Resource Center.

“Most often, this information is used to commit identity theft. Crooks submit bogus Medicare claims in the beneficiary’s name to obtain health care services, supplies, or even prescription drugs.”

There are several red flags that could suggest an individual is being targeted in a Medicare fraud scheme. The scammers often promise free items or services to older adults in order to entice them to share their Medicare number. Once the detail is revealed, they will use the number to file for high-cost claims in the victims’ names.

Some fraudsters try to pressure a target to switch their Medicare, claiming they are pre-approved for a new plan with better benefits.

The Medicare program advises people to safeguard their Medicare and Social Security numbers. A Medicare card should be treated like a credit card.

The agency advises people not to give their “Medicare card, Medicare number, Social Security card, or Social Security number to anyone except your doctor or people you know should have it (like insurers acting on your behalf or people who work with Medicare, like your State Health Insurance Assistance Program).”

“Remember that Medicare will never call you to sell you anything or visit you at your home. Medicare, or someone representing Medicare, will only call and ask for personal information in limited situations,” it said. For instance, a Medicare plan could contact a person if the individual filed a report of suspected fraud.

In case a Medicare member suspects they have been scammed or are the target of a scam, they are advised to call 1-800-MEDICARE (1-800-633-4227).

Tags: dojfraudmedicaretexas doctor
Epoch Times Report

Epoch Times Report

The Epoch Times' primary goal is to bring our readers accurate information and to be responsible to the public. We are not influenced by any government, corporation, or political party, thus we are non-partisan. The Epoch Times is the fastest-growing independent media in America. And our mission of Truth and Tradition resonates with people of various backgrounds who are tired of the growing bias of the mainstream media and who recognize the danger humanity faces under the systematic destruction of traditional values by the forces behind Communism and Socialism.

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