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Knox County Woman Charged with TennCare Fraud

Tuesday, November 13, 2012 | 07:42am

NASHVILLE, TN A Knox County woman is accused of misrepresenting herself to the state in order to obtain TennCare healthcare insurance benefits.

The Office of Inspector General (OIG) today announced the arrest of Rebecca Ann McCarty, 41, of Knoxville.  Members of the Knox County Sheriff’s Office assisted in her arrest.

An indictment accuses McCarty of three counts of TennCare fraud and one count of theft of property under $10,000.  Charges say that between December 2011 and May 2012, McCarty obtained TennCare medical assistance benefits by concealing certain facts that would have disqualified her for the TennCare program.

“We are pursuing cases in almost every area of Tennessee, from Memphis to Mountain City,” Inspector General Deborah Y. Faulkner said.  “Cases range from people lying to get free healthcare benefits … to people selling prescription drugs paid for by TennCare.”

District Attorney General Randall Nichols will prosecute. If convicted, McCarty could serve up to four years per charge for the theft of property charge which is a Class D felony and two years for the TennCare fraud charge per charge, which is a Class E felony.

The OIG, which is separate from TennCare, began full operation in February 2005 and has investigated cases leading to over $3.5 million paid in restitution and recoupment to TennCare, with a total estimated cost avoidance of over $173 million for the TennCare program, according to latest figures.  To date, over 1,700 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 and follow the prompts that read "Report TennCare Fraud."

TennCare Fraud | Press Releases