Insurance Fraud NEWS

Coalition Against Insurance Fraud

Transit authority victim in national health insurance scam

March 20, 2018, Cleveland, OH — The Greater Cleveland Regional Transit Authority which was facing questions from its auditors over $1.8 million in prescription payments now says it was the victim of a national health insurance scam.

The RTA says an investigation found the scam started in January 2014 and continued through March 2016.

The agency says the scheme involved "marketers" that recruited RTA employees who ordered prescriptions to their homes. The pharmacies involved then billed large amounts to a third-party administrator for prescriptions, which then sent bills for the prescriptions to the RTA.

The RTA says it has fired 10 employees and filed a claim Monday with its insurance company to recoup losses.

The FBI and the U.S. Attorney's Office in Cleveland have declined to comment.


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