TCM seven caught in health voucher scam

Thirteen people, including seven registered traditional Chinese medicine practitioners, have been arrested for fraud involving about HK$40,000.

The arrests, made in Tseung Kwan O on Wednesday and yesterday, saw the suspects - nine men and four women aged between 40 and 83 - hauled in.

Besides the TCM practitioners, one operates a Chinese medicine clinic and the rest are relatives of deceased individuals who were eligible to receive elderly health-care vouchers.

The voucher scheme launched in 2009 allows each resident aged 65 or above to receive a HK$2,000 subsidy a year for use of private primary health-care services.

According to senior inspector Chan Kwong-hei of Tseung Kwan O crime squad, the practitioners are suspected of colluding with relatives of deceased voucher holders to utilize remaining balances.

Chan said the police began investigating the case in October after receiving reports from the Department of Health.

"Relatives of deceased voucher holders would bring identity cards of voucher holders to clinics or pharmacies that the deceased individuals used to frequent," he said. "They would then sign consent forms allowing the practitioners to use the vouchers in the name of the deceased."

Additionally, Chan said, some pharmacies took advantage of individuals who did not want to waste their vouchers by encouraging them to purchase goods using the vouchers, which is illegal.

"Some pharmacies would even sell seafood and drugs at prices that are 10 times market prices and brainwash them to claim that they had spend the vouchers on health-care services," Chan added.

He also said the operators would then claim the subsidies and split them with practitioners.

Acting chief inspector Chan Yu-wing said the illegal use of vouchers to defraud the government would not only waste resources that should be reserved for the elderly but was also against ethical principles.

"The illegal use of vouchers may constitute fraud. Upon conviction, one may be jailed for up to 14 years," Chan Yu-wing said, urging people not to give unscrupulous pharmacies an opportunity to use the vouchers to make money.

More arrests were possible as the investigation is still under way, she added.

All suspects have been detained for further investigation.

The Department of Health also reminded the public to properly use the vouchers.

It also said voucher balances could not be transferred and the voucher could not be used solely for purchasing goods.

It urged people to abide by the rules of the scheme as those who are found violating the scheme rules or making false declarations would be strictly dealt with.