Unprecedented fraud is driving up the cost of medical and health insurance. (Photo: iStock)

Medical claims fraud, waste and abuse is a fast spreading epidemic.

Fraud losses are in the hundreds of billions of dollars — and these losses are driving medical and health insurance costs to unprecedented levels. This trend is likely to continue because managed health care regulations have resulted in decreased revenues for health care providers and motivated many of them to engage in illegal methods of recouping income losses. While the schemes and methods for committing medical claims fraud abound, most of the techniques used by health care providers fall into one of the following three fraud categories:

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