Medical identity theft is estimated to be a $70 billion a year problem that affects countless consumers, most of whom know nothing about it.
“They don’t understand the risks and yet it’s a growing problem,” said Dr. Barry Johnson, president of Healthcare Inside. “It’s a very significant problem in places like New York, Florida, California, where there are organized crime rings that actually steal medical identity in order to bill for nonexistent providers. They create an opportunity by getting a group of medical IDs and then they create a false provider identification number and then they bill Medicare and Medicaid like crazy for a few months until they get caught and then they disappear. It’s a huge problem.”
The problem is especially great for the person who has their identity stolen. In addition to owing money for medical services they didn’t receive, it also falsifies their medical record, which impacts their ability to get insurance.
To tackle the problem of healthcare fraud, a free consumer advocacy website, StopHealthcareFraud.com offers numerous tips on how to avoid falling victim to medical ID theft. The first and foremost tip is to protect your insurance card, just as you would your credit card.
“If you go to your physician now and they are doing what they’re supposed to be doing, they not only ask for your insurance card, but they also ask you for your driver’s license or some other form of identification,” Johnson said. “Because it is very common, particularly in the Medicaid arena for Medicaid ID cards to be shared so we’re trying to make sure that the person, who is presenting the benefit card is the person entitled to the benefit.”
Next, protect and carefully review your insurance statements.
“You should inspect those and look at those things,” he said. “If you suspect that that’s not a service you were provided, you should contact the service company immediately.”
Along those lines, every year request a list of benefits your insurance company has paid for you, to confirm you received those services and check your credit report regularly, for fraudulent unpaid medical bills.
