The Russian Prosecutor General's Office suspects Andrei Taranov and his deputy Dmitry Usenko of bribery and abuse of office.
Kommersant daily said earlier Friday the director and his deputy were detained on suspicion of bribery and misuse of budgetary funds.
It said the Prosecutor General's Office has opened a criminal case following a check conducted by the Audit Chamber that revealed "financial irregularities."
Searches were conducted and documents seized Tuesday at the insurance fund's central office in Moscow and eight of its regional divisions, as well as in the offices of its partner companies and organizations involved in the implementation of a state-run program to provide free or subsidized drugs to low-income groups.
But officials at the medical insurance fund declined to comment on bribery charges against its director.
"I can neither confirm nor deny anything. I have nothing to tell you on the matter," the fund's press secretary told a RIA Novosti correspondent.
