Exclusive: Undercover Grandma and Medicare Fraud

One visit to the doctor's office opens doors for huge taxpayer rip-offs.
2:33 | 03/01/12

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Transcript for Exclusive: Undercover Grandma and Medicare Fraud
Now ten major crackdown on Medicare fraud costing taxpayers tens of billions of dollars each year. There were more raids on Wednesday a day after a three -- -- -- five million dollar scheme was taken down the Fed's biggest bust ever. ABC's Brian Ross joins us now with an ABC news investigation into how these crooks -- something -- out -- so much money here. I really is Robin good morning to you the waste and scams involving the Medicare system are estimated to be sixty billion with a B dollars a year or more. So using hidden cameras and a very healthy golf playing 82 year old grandmother. ABC news went undercover to see firsthand how what can happen. Going to McAllen Texas which federal authorities call a hotbed of Medicare fraud. Where a simple trip to the doctor's office and result in the diagnosis for expensive treatments that are not needed. As we sell. When our undercover grandma was personally taken by a home health care recruiter to a doctor's office in McAllen Texas. Where she told the doctor she was in fine health. You don't have any feedback at sheriff's. Saying. Yet the home health care files we got later from the doctor's office which show her with a range of illnesses she did not have including DM two diabetes. And supposedly home -- Unable to safely leave home unassisted severe SOB meaning shortness of breath thing. Authorities say that diagnosis could mean tens of thousands of dollars in Billings for unneeded home health care on the federal agent. But the bottom line is you can see for yourself it doesn't pass the smell test but doctor involved had -- Barbara Rogers did not want to talk about what happened. This comes your -- right here. -- diagnosed with diabetes -- for. And if you about your make up these diagnosis princess. The -- -- later admitted there were errors on the health forms and said someone other than the doctor her nurses he did not say who. Did it put in the bogus diagnosis. Which if true leaves the question of why the doctor who's responsible didn't catch that catch someone ripping off Medicare using her signature -- name. -- one case in one Texas town that authorities say happens across the country all the time and that doctor and others in the health care system now under investigation as a result of our reporting and thank you for your investigation of this Brian as always in -- we'll have much more tonight. On Nightline be -- and check it out.

This transcript has been automatically generated and may not be 100% accurate.

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