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Federal officials said Tuesday that they had dismantled a $1.2 billion Medicare scheme that spanned continents and ensnared hundreds of thousands of unsuspecting elderly and disabled patients. Under the scheme, which the authorities described as one of the largest health care frauds in United States history, doctors prescribed back, shoulder, wrist and knee braces that were not needed, prosecutors said. Twenty-four people were charged, according to the Justice Department. (Chokshi and Jacobs, 4/9)

Officials said the scheme involved offering Medicare beneficiaries orthotic braces, saying they were free to them and covered by Medicare. Patients who expressed interest were reportedly patched through to call centers in the Philippines and Latin America that were in on the scam, which would verify the beneficiaries' coverage and transfer them to telemedicine companies. The call centers collected prescriptions and sold them to medical equipment companies, officials said, which shipped the braces to beneficiaries and billed Medicare for them. The medical equipment companies received Medicare reimbursement of $500 to $900 per brace, for which they paid kickbacks of nearly $300 per brace. (Budryk, 4/9)