Healthcare benefits are meant to benefit individuals who otherwise might not be able to afford medical care. The individual must first be eligible, however, which requires them to complete and submit a valid application for healthcare benefits. Falsifying information on such an application in order to receive benefits that are not deserved is a form of insurance fraud and is severely punished under Illinois state law.


According to 720 ILCS 5/17-10.5, health care benefits fraud is a Class 2 misdemeanor. If the individual commits any form of insurance fraud 3 or more times within an 18-month period, then it is aggravated insurance fraud and is a Class 1 felony. Additionally, anyone found to be an organizer of insurance fraud is guilty of a Class X felony. The penalties are as follows:

  • Class A misdemeanor: Up to 1 year in jail; maximum fine of $2,500
  • Class 1 felony: 4 – 15 years in jail or prison; maximum fine of $25,000
  • Class X felony: 6 – 30 years; fine of up to $25,000

In addition to the fines listed above, a person guilty of defrauding the Medicaid program will be required to recompense the amount of financial loss, including court costs and attorney fees.


If convicted of healthcare fraud, you could face extensive time in jail and high fines that turn your life upside down. That is why you should not hesitate to hire a Chicago criminal defense lawyer from the offices of Okabe & Haushalter. Our firm is experienced in cases of all sizes, from first-time DUI charges to allegations of murder. Contact us today to discuss your case with an attorney from our team. We would love to study your case and help you build the strongest possible defense.

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