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The Medicare program is ripe for fraudulent activities because it is based on the “honor system” of billing. Most doctors, healthcare providers, suppliers, and private companies are trustworthy. However, there are those who are not. Adding to this vulnerability is the lack of safeguards that can root out fake claims, since the federally-funded health insurance program puts more emphasis on expediting and streamlining reimbursement, than validating the veracity of claims.

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The Medicare program is a federally-funded medical plan for Americans age 65 and above that covers medical expenses such as clinic visits, hospital admissions, medications and other treatments. Unfortunately, the system is milked by fraudulent individuals who are taking advantage of the lack of mechanisms that validate the veracity of claims.

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