U.S. Attorney: Seven public officials indicted for insurance fraud

  • A reward program is at the center of the fraud case.

Acting U.S. Attorney for the Western District of Missouri David M. Ketchmark announced Thursday afternoon that six employees of Kansas City and one Jackson County employee have been indicted on federal charges of defrauding their health-insurance program. The fraud involved hundreds of public employees who allegedly reaped $300,000 from an insurance program by lying about doing triathlons, running marathons and even participating in Olympic lifting for cash rewards.

The 21-count indictment alleges that the employees wrongly received incentives from Blue Cross and Blue Shield of Kansas City’s “Points to Blue” program. Participants in the program would log onto a website and input healthy activities they had done. They earned points for each activity. For every 1,000 points earned, the employees tallied $1 toward a gift card or a preloaded debit card. The annual limit for each employee was $250.

According to the indictment, the employees claimed to do more strenuous activities (and thus earn more points). They also allegedly entered activities for co-workers and their dependents in return for keeping some of the points.

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