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Medicare goes high-tech to head off fraud

06/17/11 – In an effort to curtail fraud, Medicare will employ screening technology that is similar to what credit companies already use.  Traditionally, Medicare has paid claims first and asked questions later in a system called “pay and chase.”  With this new technology, Medicare will be able to track large numbers of claims using computer analysis to spot patterns of potential issues.  Medicare has awarded an initial $77 million contract for the new system to defense giant Northrup Grumman and a group of companies.  In discussing Northrop, Medicare anti-fraud czar Peter Budetti said, “We will be able to translate their experience from the private sector into Medicare.”  Note that the government is contracting with a company that has constantly committed fraud against them.  See: Northrop Grumman Agrees to Pay $12.5 Million to Settle Civil False Claims Act Case Alleging Test Violationshttp://www.fbi.gov/losangeles/press-releases/2010/la062310.htm

Read more:  http://www.forbes.com/feeds/ap/2011/06/17/general-mobile-telecommunications-us-medicare-fraud_8522267.html

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