Obion Co. Woman Charged with TennCare Fraud

NASHVILLE, Tenn. – An Obion County woman is charged with TennCare fraud involving doctor shopping, or using TennCare to go to multiple providers in a short time period to obtain controlled substances.

The Office of Inspector General (OIG), with the assistance of the Obion County Sheriff’s Office, today announced the arrest of Kathy Ann Hailey, 52, of Troy. An indictment charges her with four counts of TennCare doctor shopping. The clinical visits, prescriptions or both were obtained through Medicare Part B, which is paid for in part by TennCare.

“We strongly believe in the mission of the TennCare program and we are committed to protecting the integrity of TennCare with direct strikes on all fraud and abuse in the program,” Inspector General Manny Tyndall said. “Local law enforcement and local providers across the state have also stepped up to help enforce the law against doctor shopping within TennCare.”

TennCare fraud is a Class E felony carrying a sentence of up to two years in prison per charge.  District Attorney General Thomas A. Thomas is prosecuting.

The OIG, which is separate from TennCare, began full operation in February 2005 and has investigated cases leading to more than $3 million being repaid to TennCare, with a total estimated cost avoidance of more than $163.6 million for TennCare, according to latest figures. To date, more than 2,563 people have been charged with TennCare fraud.

Through the OIG Cash for Tips Program established by the Legislature, Tennesseans can get cash rewards for TennCare fraud tips that lead to convictions.  Anyone can report suspected TennCare fraud by calling 1-800-433-3982 toll-free from anywhere in Tennessee, or log on to www.tn.gov/tnoig/ and follow the prompts that read “Report TennCare Fraud.”