Call It Bogus 1 2 3

A baby with a backache? When claims from chiropractors for treating entire families--including a six-month-old--came into Travelers Corp. recently, they were quickly flagged as possible fraud. Further investigation showed they were part of a kickback scheme where "patients" receiving payments would fork over most of the money to chiropractors. It wasn't an eagle-eyed Travelers employee who noticed the pattern, however. It was the newest weapon in insurers' attack on rampant health-care fraud: Software designed to sift through mountains of claims to detect suspicious billing and treatment patterns.

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