Doctor Accused of $95M Medicare Fraud With Placenta Bandages

On Tuesday, the Justice Department initiated charges against Nevada-based physician Dr. Stephen Dubin, alleging his involvement in a $95 million Medicare fraud scheme. The scheme reportedly centered on the application of expensive and unnecessary wound coverings, specifically skin substitutes derived from placentas, to elderly Medicare beneficiaries.

These advanced bandages, costing thousands per square inch, have been found by investigations to offer little to no improvement over standard dressings. Medicare expenditures on such products soared to nearly $15 billion in 2025, an amount widely criticized as significant federal waste. Following a 2025 New York Times investigation, the Trump administration drastically reduced reimbursement rates, causing spending on these products to fall to $100 million this year.

Prosecutors assert that Dr. Dubin submitted fraudulent invoices to Medicare, concealing kickbacks paid to him by the manufacturer, Legacy Medical Consultants. A Legacy executive was previously charged in June for offering illegal kickbacks. The Justice Department further alleges that Dr. Dubin applied these costly coverings to patients who were poor candidates, including those with infected wounds.

Dr. Dubin, who retired in 2024, had previously described the wound care market as lucrative and low-risk. The charges state his Medicare earnings financed a lavish lifestyle, including the commission of multiple multimillion-dollar yachts. He has not yet responded to requests for comment.