Problem:
Medicare is a popular although very expensive program that provides health care services for the elderly. It is commonly believed that stronger controls are needed to curb waste and fraud and abuse of the system. Medical fraud likely consumes 10 percent of Medicare's $500 billion annual budget. As an example, in the spring of 2015 the Department of Justice announced the arrest of 243 people and charged them with stealing $217 million from Medicare. Among the arrested were nearly 50 "doctors, nurses, pharmacy owners, and other medical professionals" who fraudulently billed the government for therapy sessions and prescriptions. One physician allegedly prescribed $23 million for medically unnecessary power wheelchairs; another is accused of handing out addictive narcotics in exchange for his patients' personal information to generate further false billings. Many of these patients became addicted, which forced them to continue the scheme. Although Medicare fraud accounts for only a tiny fraction of the budget, these health care providers arrested for ripping off the system were not only stealing from the tax payers, their arrests shape the way the public views our professions. Unlike problems of etiquette and ethics, cases like these cannot be seen as honest mistakes or differences of opinion. They are crimes.
1. Is this a matter of public or private law?
2. Explain whether you think this will be handled as a felony or misdemeanor case.