Coverage for allegations that an insured healthcare provider overbilled the
federal government in seeking reimbursement for services performed under Medicare.
Offered as an endorsement to physicians and hospital professional liability
insurance policies, this coverage became prevalent in the late 1990s when the
federal government initiated concerted efforts to pursue Medicare billing violations
by healthcare providers. The policies exclude coverage for fines, penalties,
and punitive damages, and coverage is limited to defense cost reimbursement
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