CA Uncovers Major Medi-Cal Fraud

Armen Hareyan's picture

A very major health insurance fraud has been uncovered in California as the authorities unveiled today that they have arrested 20 people who posed as nurses and caregivers of disabled patients. This Medi-Cal scheme has earned them more than 4.6 million dollars.

Spokesmen for the Federal Attorney in Los Angeles revealed at a press conference that the defendents are accused of defrauding Medi-Cal system, which is California's Medicaid health insurance program. The defendents have applied for financial aid for the care of 75 patients, mostly children with cerebral palsy and other disabilities. These people were unlicensed individuals who stole identities to pose as licensed nurses.

"We believe this is the biggest such case involving the health insurance system known as Medi-Cal in California," said federal prosecutor Thomas O'Brien.


There are nearly 42 people involved int his case and there are 41 charges on the table.

According to the findings, between 2004 and 2007 the defendants set up an office called Medicare Plus Home Health Providers, led by Priscilla Villabroza and headquartered it in Santa Fe Springs. Villabroza hired unlicensed persons to practice as nurses and they received payments from Medi-Cal from $20 to $35 dollars per hour.

Medi-Cal is the California's health insurance program offering coverage to people who have low income.

The woman, who had been registered as a nurse and who pleaded guilty of leading the plot last year. She is now facing a jail time of 50 years.

Written by Armen Hareyan