Health Highlights: Aug. 5, 2008

-----

Medicare OK'd Fake Suppliers: Report

Medicare approved two fake companies to supply wheelchairs and other equipment, even though the phony firms had no inventory or clients, says a Government Accountability Office report released Monday.

The bogus companies in Maryland and Virginia were set up by government investigators looking into fraud problems afflicting Medicare,Bloombergnews reported.

"If real fraudsters had been in charge of the fictitious companies, they would have been clear to bill Medicare from the Virginia office for potentially millions of dollars of false supplies," the GAO said.

Billing tests for the fake Maryland company weren't completed because the investigators didn't receive the necessary passwords from Medicare,Bloombergreported.

In the fiscal year ending March 2007, Medicare made about $1 billion in improper payments on canes, prosthetic devices, wheelchairs, and other equipment. Medicare says it's implementing new billing oversight requirements for medical suppliers, according toBloomberg.

-----

U.S. Woman First to Get Cloned Puppies From S. Korean Company

A California women is the initial customer of a South Korean company that claims to be the world's first successful commercial canine cloning service. Bernann McKinney received five puppies Tuesday that were cloned from her late pitbull Booger.

His frozen cells were brought to RNL Bio of Seoul, South Korea, in March and nurtured before formal cloning work began in May, theAssociated Pressreported. RNL identified the puppies as Booger's genuine clones and reconfirmation tests are being conducted by Seoul National University scientists.

RNL eventually plans to clone about 300 dogs a year and may even clone camels for customers in the Middle East. The company charges up to $150,000 for dog cloning, but McKinney will pay only $50,000 because she's the first customer and helped with publicity, theAPsaid.