The Reality of Fraud in DME is misunderstood by many.

Vice President JD Vance recently highlighted healthcare fraud, describing how fraudulent companies bill Medicare and Medicaid for equipment such as oxygen concentrators and hospital beds that are never delivered. Their scheme is simple: bill, collect payment, close the company, and reopen under a new name. While legitimate providers like SurfMed serve patients responsibly, fraudulent companies exploit the system for personal gain.

For 70 years, SurfMed has worked to combat fraud by partnering with state and federal regulators to strengthen oversight and improve safeguards. Fraud by a few damages the reputation of the entire healthcare industry.

Fraud also occurs on a smaller scale. Some providers illegally solicit Medicaid members before they enroll in a Managed Care plan. Others attempt to influence referrals by offering gifts, gift cards, expensive items, or lavish events for case managers. These practices are illegal and undermine fair competition.

Today, federal and state agencies, along with Managed Care Organizations, are using data analytics and investigations to identify and stop fraudulent activity. Providers and case managers alike are being held accountable.

If you suspect fraud, are asked to share Medicaid member information improperly, or learn that a member was unlawfully solicited, report it immediately. Not every concern is fraud, but reporting suspicious activity helps protect members and supports ongoing anti-fraud efforts.