Man Gets Prison Time For $99.9M Health Fraud

By: Associated Press
By: Associated Press

A federal judge has sentenced a former health care executive to five years in prison for helping his Philippines-based company swindle $99.9 million from the U.S. military health insurance program.

U.S. District Judge Barbara Crabb told Thomas Lutz at his Tuesday sentencing hearing that "it's just horrifying" he was able to get away with taking so much from the Pentagon's Tricare program, which insures 9.2 million service members and their dependents.

Crabb says Lutz and his company, Health Visions Corp., must pay the U.S. government $99.9 million in restitution.

Prosecutors say the company routinely inflated claims by more than 230 percent, operated a phony insurance program and billed for medical services never delivered.

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