Cumberland, Hamilton Co. Residents Charged with TennCare Fraud

NASHVILLE, Tenn. – Two people are charged with TennCare fraud in separate cases in Cumberland and Hamilton Counties; both cases involve prescription drugs.

The Office of Inspector General (OIG) today announced the arrests of Danny R. Reed, 59, of Crossville and Jennifer L. Gates, 31, of Cleveland.

Reed is charged in Cumberland County with TennCare fraud along with sale and delivery of a controlled substance. An indictment accuses him of using TennCare benefits to obtain a prescription for the painkiller Oxycodone and later selling a portion of the drugs to a confidential informant. 

In Hamilton County, Gates is charged with three counts of fraudulently using TennCare by doctor shopping, or visiting multiple providers in a short period of time to obtain controlled substances.

TennCare fraud is a Class E felony carrying a sentence of up to two years in prison per charge.  District Attorney General Bryant C. Dunaway will be prosecuting the Cumberland County case.  District Attorney General Neal Pinkston will be prosecuting the Hamilton County case. 

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, 2,537 people have been charged with TennCare fraud.

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.”