Medical Insurance Fraud occurs when a claimant attempts to claim a medical benefit they are not entitled to or an insurer denies such medical benefit they are obliged to provide.   Medical insurance fraud can also happen when an individual provides false information to the insurance company, in that they are seeking compensation for a service that they never obtained.  For example, providing a false receipt for a paramedical expense that was never used in order to obtain the monetary refund is medical insurance fraud. 

This type of fraud can attract a wide range of sentences in the criminal code, ranging from probation to 14 years in jail depending on the sophistication of the scheme and amount of financial loss.