A troubling new Medicare fraud scheme has surfaced, targeting older adults and individuals in hospice or nursing care. At the center of this scam are fraudulent charges for wound-care supplies—items that patients never needed, never ordered, and often never received. These charges are showing up on Medicare Summary Notices (MSNs) and Explanation of Benefits (EOBs), draining billions from the system and placing a financial burden on some of the country’s most vulnerable residents.
What’s Happening
Health care fraudsters are submitting fraudulent Medicare claims for wound-care supplies such as gauze, bandages, gel dressings, and even expensive amniotic grafts. In many cases, these charges reappear month after month without patients ever being aware of them. Recent enforcement actions by the Department of Justice (DOJ) reveal the scale of the problem. In one notable case in Arizona, a couple pleaded guilty to submitting over $1.2 billion in false Medicare claims for medically unnecessary wound grafts. Their operation targeted elderly and hospice patients specifically. Other major cases, such as that involving Apex Medical, uncovered hundreds of millions of dollars in fraudulent claims for amniotic allografts. These types of supplies are typically reserved for serious wound care under physician supervision, yet scammers have exploited the billing system to file for items that were never used or needed.
In 2025, as part of a nationwide crackdown known as the National Health Care Fraud Takedown, 324 defendants were charged in schemes totaling $14.6 billion. This included fraudulent activity related to durable medical equipment (DME), wound-care products, and improper billing practices. Providers such as Vohra Wound Physicians have been identified in investigations for submitting claims that lacked medical necessity or proper documentation.
Fraud Impact
The impact of this medical fraud extends beyond wasted government resources. When Medicare pays 80 percent of approved DME costs, fraudulent claims can mean real out-of-pocket expenses for patients and their families—especially if the remaining balance falls to them. Seniors in long-term care or hospice settings are often the most affected. These individuals may be unaware of how to review their Medicare documentation or unable to challenge unauthorized charges. This leaves the door wide open for ongoing abuse. The financial consequences are significant. Convictions and settlements in these cases have already reached into the hundreds of millions of dollars, with many investigations still ongoing.
How to Protect Yourself
There are practical steps Medicare beneficiaries and caregivers can take to avoid falling victim to this type of scam:
- Check Your Statements Regularly
Carefully review your Medicare Summary Notice or Explanation of Benefits every month. Look for any wound-care charges you don’t recognize or didn’t discuss with your healthcare provider. - Report Suspicious Activity
If you find questionable charges, contact the Texas Senior Medicare Patrol at 1-888-341-6187. This free and confidential service can help investigate the issue and work toward reversing fraudulent claims. - Return Unrequested Medical Supplies
If you receive wound-care or other medical supplies you never ordered, do not use them. Return the items to the sender without paying for shipping, and report the incident to Medicare or your health insurance provider.
A Call for Vigilance
Medicare fraud harms everyone by draining resources, increasing costs, and compromising the integrity of the healthcare system. The recent surge in wound-care billing scams underscores the importance of awareness and proactive monitoring. By staying informed, reviewing medical statements, and reporting suspicious charges, beneficiaries and caregivers can play a vital role in stopping this form of abuse and protecting others from becoming victims.
