Health Care Fraud: What is 18 USC 1347?

medical fraud

With over fifteen years of experience, James S. Bell P.C. has forged a name as a leading United States trial attorney. In this article, he’ll help us understand more about health care fraud and what is 18 USC 1347.

In this region, health fraud is a significant problem. The Government spends a lot of money, which is portrayed as a costing taxpayer during campaign season and thus becomes a hot button problem. The result is political fervor for repressions that have been steadily rising since 1993, especially in the last five to ten years.

Federal officers have at their fingertips a variety of laws and regulations. These are in the majority of instances used for launching civil inquiries. Nonetheless, we are seeing more and more civil questions referred to as criminal justice law enforcement agencies. For healthcare fraud, there is more than one way to be tried.

Drug fraud is one of the Department of Justice’s key concerns. Since funding for health benefits programs such as Medicare is minimal, the Department targeted not only important entities such as hospitals and drug firms but also individual physicians. They are accused of defrauding a health benefits system.

18 USC 1347, also known as the federal health fraud law, is the most strong weapon of the DDJ in the field of medical fraud. It has specific restrictions and serious penalties.


In general, under this Law, many actions are punished. One of the most famous examples is to charge for medical treatment or prescriptions never given a health care insurance program. Another common cause is the delivery of medical treatment or medications for a patient that was not necessarily needed.

Self-referred care and repeated requests for the same medical treatment or drugs are also made. In compliance with the Law, the upcoding, or billing for a medical or pharmaceutical service more costly than that currently given is often carried out as a separate process in respect of each phase of the single process.

How Things Work

In clear and appropriate terms to break 18 USC 1347 down: Part A tells us the mental state required for prosecution (the accused must have committed fraud deliberately).

Under Section A, Paragraphs 1 and 2 of this Act state which conduct is classified as fraud. It is a specific term — any misrepresentation of any system of medical care. 18 USC 1347 can be used in cases involving federal services like Medicare or in commercial insurance disputes to sue patients and providers.

Part B also tells us that it should not be expected that the defendant violates this specific portion of the U.S. Code. However, the fact that 18 USC 1347 is an intentional crime does not change. Under the federal health care fraud law, you can only be prosecuted if the Government can show that you commit fraud intentionally and knowingly. In other words, you might still be charged under this Law if you knew you would be making false statements to defraud the Government, but you didn’t know about 18 U.S. CE 1347.


These are not the only cases to be tried under the federal fraud law. The Law is fairly broadly written to refer to almost all potential cases of health fraud. Anything that medical professionals can not even find to be fraud may be prosecuted.

It is all too easy to speak maliciously about a rival or disgruntled former employee. Medical board or prosecutors’ reports may be made anonymously, and criminal inquiries may be caused. Some companies and government agencies use computer programs to track and analyze health provider billing codes against “typical” billing codes for the area of the provider.

Because computers lack human intuition and algorithms for recognizing differences, a crime can be caused by natural statistical variance. Even the wrong new or incompetent worker will create an investigation using the wrong codes.

It all too quickly can snowball out of control once an investigation has started. Standard billing practices may be deemed potentially fraudulent when a lawsuit is lodged. Investigators will look for something that may sound like fraud, regardless of their motive. They will look at any payment issues with a finely polished comb. The facts supporting fraud allegations can appear to many health care staff to arise from the left. That’s why a RAC audit is conducted for hospitals and other healthcare establishments. You can Go now and see the consequences of the RAC audit and how skilled and experienced industry professionals can help streamline the entire process. Such professionals can help in mitigating the circumstances and avoid criminal charges. Not to mention, their negotiation skills can also help in avoiding severe penalties. 

As any healthcare fraud attorney can tell you, no insurance system or company can claim to assume that it is immune to federal health fraud investigation. Each provider or agency of healthcare must be vigilant to stand up for fraud in the case of national healthcare.