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HSS operator admits to defrauding Medicaid of more than $1.2M — and using ‘weaponized incompetence’ to pull it off
Yahoo Finance·2025-10-28 09:30

Core Insights - A guilty plea in a Medicaid fraud case highlights significant healthcare scams costing U.S. taxpayers billions [1] - The fraud involved billing Medicaid for services that were never provided, with one individual admitting to $1.2 million in fraudulent claims [1][2] - The U.S. Department of Justice estimates healthcare fraud costs Americans approximately $100 billion annually, while other estimates suggest it could be as high as $300 billion [3][4] Group 1: Fraud Details - Anwar Adow, through his company Liberty Plus LLC, fraudulently billed Medicaid for care not provided, exploiting the Housing Stabilization Services program [1][2] - Adow's actions included drawing vulnerable clients into the scam to collect personal information for fraudulent billing [2][3] - His brother, Asad Adow, is also implicated, accused of defrauding $2.7 million from Medicaid [3] Group 2: Impact on Healthcare Programs - The scale of fraud has led to the termination of the Housing Stabilization Services program due to widespread abuse [3] - The acting U.S. Attorney emphasized that the current system of oversight is failing, allowing fraud to overshadow legitimate services [2] Group 3: Financial Implications - The U.S. Department of Justice's estimate of $100 billion in annual healthcare fraud is considered conservative, with some experts suggesting the true cost could be significantly higher [3][4] - The National Health Care Anti-Fraud Association estimates that healthcare fraud constitutes 3% to 10% of national health expenditures, translating to around $300 billion annually [4]