Coloring Scam: Medicare Ripped Off

⏱ 2 min read

Irina Segal, the owner of Segal Arts, LLC, in Bucks County, Pennsylvania, just got a slap on the wrist for a cold-blooded scheme to bilk Medicare out of $200,000. Segal billed the federal health program for individualized occupational therapy sessions for elderly patients in Pennsylvania and New Jersey assisted living facilities – therapy that never happened. Instead, residents were getting group arts-and-crafts sessions, and Segal was pocketing the cash.

Federal investigators say it wasn’t a mistake. Agents with the Department of Health and Human Services Office of Inspector General (HHS-OIG) sat Segal down and explained what qualified as legitimate occupational therapy billing. She understood the rules. She ignored them. The fraudulent claims kept flowing, and so did the Medicare reimbursements for glorified coloring sessions.

A consent judgment finalized in federal court forces Segal to repay the $200,000, a sum determined to be within her means. But the feds aren’t hailing it as a major victory. It’s far short of full restitution, and Segal avoids any time behind bars. The case exposes a familiar pattern: even when confronted with clear evidence, those who prey on vulnerable seniors often face minimal consequences.

The scheme ran for an undisclosed period before HHS-OIG caught wind. While the details of the initial tip remain sealed, sources say an internal complaint within an assisted living facility triggered the investigation. Segal Arts, LLC, continues to operate, but under increased scrutiny.