Paint & Fleece: Medicare Hit for $200K

⏱ 2 min read

Irina Segal, owner of Segal Arts in Bucks County, PA, is paying up $200,000 to resolve allegations of a cold-hearted Medicare scam. Prosecutors say Segal billed the program for individual occupational therapy sessions, but was actually running group art classes at assisted living facilities across Pennsylvania and New Jersey. The scheme stretched on despite warnings from federal health officials.

According to the feds, Segal Arts raked in cash by falsely claiming these group art sessions – think finger painting and macaroni necklaces – qualified as legitimate, one-on-one therapeutic interventions. The scam wasn’t just about the money; it exploited vulnerable seniors and siphoned funds meant for actual medical care.

Health and Human Services investigators reportedly told Segal her billing didn’t meet the necessary medical coding requirements. Instead of making things right, or offering refunds, she allegedly kept the improperly obtained funds. The settlement amount was dictated by Segal’s ability to pay, according to the Department of Justice.

U.S. Attorney David Metcalf’s office called the case a clear example of preying on the elderly. Maureen Dixon, with the HHS Office of Inspector General, said the payout is a message: Medicare money is for care, not crafty cons.