A recent article in the Healthcare Info Security discusses a study conducted by the Ponemon Institute, sponsored by Experian’s ProtectMyID. The study asserts that nearly 70 percent of the medical ID theft incidents involved others fraudulently using credentials to obtain healthcare services. In more than half of the medical ID theft cases, the victims didn’t report the incidents to law enforcement, often because they knew the person who stole their identity.
This is often called the “Robin Hood effect” because family members are allowing the use of their insurance card to cover uninsured relatives. It is understandable why someone might help out an ailing relative, however, cases have been found where cards were used to purchase medical devices and equipment like scooters that were later sold on eBay.
The Affordable Care Act estimates that healthcare reform could bring coverage to 30 million uninsured who lack coverage. By covering more people with healthcare, we should see a substantial drop in the number of uninsured but will we see a corresponding drop in medical ID theft? That may be optimistic.
That’s because not all health insurance policies are created equal. Some of the least expensive new offerings expected to be obtainable on the market, or provided through the expansion of state-level Medicaid and Children’s Health Insurance Programs, might not offer all the benefits someone wants, Ponemon says. There could still be a motivation to fraudulently gain access to better polices which have more benefits.
One way to deter medical identity fraud is to add advanced technologies like biometrics to insurance cards. The biometrics would be used to verify the identity of the patient at every visit and would prevent fraudulent use of the insurance plan. Biometric identification would also support the transfer of Electronic Health Records between healthcare providers. Every action taken pertaining to the patient throughout the healthcare system would be verified and validated.
The technology is out there, we should take advantage of it to prevent fraud and save some money.