Insurance fraud: Man submits $900K worth of claims...and we're all paying for it

MILWAUKEE (WITI) -- We all know how expensive healthcare has become! You get those bills and you're hit with sticker shock! And then there's this: An outrageous case of insurance fraud is costing us all.

"He made claims with three large insurance companies that he had an accident where he lost his left arm in a wood chipper," U.S. Postal Inspector Derik Thieme said.

He is Michael Le Duc. He submitted $900,000 worth of claims for disability benefits.

But there was a problem.

"As it turned out, he had both of his arms," Thieme said.

The insurance companies were suspicious of Le Duc's claims -- and asked postal inspectors to look into the case.

"In investigating the matter what we found was that he had been to the hospital and had actually been seen by the doctor for another matter," Thieme said.

Le Duc did not lose his arm.

"He took those hospital forms, altered the forms, and mailed them to the insurance company to support his claim," Thieme said.

Le Duc received $12,000 from fraudulent submissions.

The insurance companies aren't the only ones losing money. All consumers pay the price.

"The insurance companies need to recoup any losses they may have or expenses and that`s only going to be passed along to consumers so it really affects the general public in that it causes rate increases and things of that nature," Thieme said.

Le Duc pleaded guilty and was sentenced to more than four years in prison.

He was ordered to pay more than $70,000 in restitution.