Amtrak became the victim of an Amtrak health care fraud scheme, after several employees conspired with medical providers to submit false insurance claims, resulting in losses exceeding $11 million. This is reported by the railway transport news portal Railway Supply.
Federal prosecutors revealed that from January 2019 to June 2022, the employees allowed unethical providers to use their insurance details in exchange for thousands of dollars in cash kickbacks.
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The fraudulent claims were made for treatments that were medically unnecessary or never provided. Amtrak unknowingly reimbursed these fake charges through its employee health insurance plan.
In total, nine individuals were involved, including four external co-conspirators. All have pleaded guilty to conspiracy to commit health care fraud.
Investigators found that the employees misused their access to Amtrak’s benefits program, enabling false claims to pass through undetected. Providers involved included acupuncturists and podiatrists.
As a result, Amtrak’s health care fund suffered significant financial damage. Prosecutors stated that no services were delivered in many of the billed cases.
U.S. Attorney Alina Habba stressed that the fraud undermined the integrity of a system designed to support employees. She confirmed that the company itself bore the full financial burden of the scheme.
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