Medical equipment and genetic testing fraud continue to be major threats to Medicare beneficiaries nationwide—and Hawaii is no exception. These schemes often target older adults with promises of “free” products or tests, while quietly billing Medicare for services that are unnecessary or never provided.
The scale of this problem became especially clear last summer during the 2025 National Health Care Fraud Takedown, the largest enforcement action of its kind in U.S. history. Federal and state law enforcement agencies worked together to bring criminal charges against 324 defendants, including doctors, nurse practitioners, pharmacists, and other licensed medical professionals. The alleged fraud involved more than $14.6 billion in intended losses, more than doubling the previous record.
The investigation uncovered widespread schemes across the country, including cases involving physicians and pharmacies submitting claims for drugs, medical devices, and tests that patients did not need—or never received. In some instances, pharmacies sought reimbursement for products they never sold. Other healthcare providers allegedly accepted kickbacks to generate fraudulent prescriptions.
These schemes exploited both patients and taxpayers, undermining trust in the healthcare system and putting Medicare benefits at risk.
Fraudsters often rely on aggressive marketing tactics, unsolicited phone calls, and misleading offers to obtain personal information. Common schemes include:
Once personal information is obtained, scammers bill Medicare for unnecessary or nonexistent services—often without the beneficiary’s knowledge.
Protecting yourself starts with awareness and regular review of your Medicare information. Key steps include:
If something doesn’t seem right, trust your instincts and ask questions.
Medical equipment and genetic testing fraud drain taxpayer dollars and threaten the integrity of Medicare. Law enforcement agencies continue to actively investigate and prosecute these schemes, often using the False Claims Act to pursue charges and settlements against those responsible. However, prevention starts at the individual level.
By staying informed and vigilant, beneficiaries help protect not only their own benefits, but also the Medicare program as a whole.
Education is one of the strongest tools we have to prevent fraud. Staying informed helps you safeguard your Medicare benefits and empowers you to help protect your ʻohana and neighbors as well.
SMP Hawaii is dedicated to educating Medicare beneficiaries, caregivers, and communities about fraud prevention. By learning how to spot scams and sharing that knowledge with others, you help create a safer, more informed Hawaii.
If you’re looking to make an even greater impact, ask about volunteer opportunities and join the effort to protect Medicare and support our kūpuna across the islands.
Together, through awareness and action, we can help ensure Medicare remains a trusted and reliable resource for Hawaii’s communities.
