Health-care fraud a new temptation
As companies drop the benefits, some may not see theft as crime
Federal prosecutors say using someone else's identity to get health care is fraud, and people who do it face serious criminal penalties.
"People seem to downplay this crime," said U.S. Attorney for Utah Brett Tolman. "The big deal is it's diverting resources to people who aren't paying for them, and that's fraud."
Take the case of Jason Trevor Scharf. Scharf was indicted last August on multiple counts of health-care fraud and identity theft. In accepting a plea deal, Scharf admitted to using stolen personal information to gain access to another man's health-insurance policy so he could receive surgery on his wrist. An associate of Scharf's, Michaele Muree Meier, was also charged with allowing her sister, Leslie Suzanne Zimmerman, to use her health-insurance coverage through her husband to have dental work done.
Scharf faces a maximum of 20 years in prison for fraud and two years for identity theft at his sentencing July 22.
But even more prominent figures can run into trouble with the law. The former director of the Housing Authority of Salt Lake City, Rosemary Kappes, found herself charged with health-care fraud and mail fraud after she kept herself on her ex-husband's health-care policy eight years after the two divorced.
The situation came to light during a debate at the Housing Authority over offering health-insurance benefits to employees' domestic partners. Kappes told the FBI that she had divorced her husband for tax purposes and that they continued to live together as "life partners."
Even though Kappes' husband received about $14,000 in medical services, insurance documents showed he had paid some $28,000 in insurance premiums. In essence, the insurance company actually made money over the whole thing. In a plea deal reached with prosecutors, Kappes was sentenced to one day probation.
In instances of health-insurance fraud, Tolman said it's not the insurance companies who are the victim, rather, it's those who are "living within the rules" who must pay the increased medical costs.
E-mail: gfattah@desnews.com
Recent comments
We were all told the truth by Dr. Ron Paul when he said that THE...
Tammy | July 5, 2008 at 11:52 p.m.
I am as frustrated as anyone with the ripoff drug costs and ripoff...
healthcare woes | July 5, 2008 at 4:31 p.m.
Universal Healthcare does not stimulate the innovative medical breakthroughs...
Utah Resident / American | July 5, 2008 at 1:39 p.m.
