Identity thieves, armed with an unsuspecting consumer's insurance information, can obtain medical services under that person's name. Many people are not even aware that such fraud is taking place unless they receive a bill from the provider for amounts not covered by insurance.
Once an individual discovers that medical identity theft may have occurred, federal privacy laws, including the Health Insurance Portability and Accountability Act (HIPAA), make it difficult for them to obtain their own medical records to prove that they have been defrauded. Under HIPAA, providers are penalized if they release health care information to any party without following extensive security procedures to ensure that the recipient is legitimately permitted to see the information.
Also, there is no central repository of medical information, so patients seeking to obtain their own medical records must go through each provider they have visited. This is much more difficult and time-consuming than, say, correcting an error on your credit report. You can easily obtain your credit report through TransUnion, Experian, or Equifax - but no similar company collects information about your medical history or insurance claims experience.
So what can you do to protect yourself from medical identity theft? According to the article in the L.A. Times, prevention is the best medicine:
- Start gathering your medical information now, before anything bad happens. Contact each of your providers now for a copy of your medical records, and ask for updates on a regular basis - say, once or twice a year.
- Ask your insurer for a list of all claims which they have paid on your behalf this year.
- Every time you get a bill from a provider, or a summary of insurance benefits from your insurance company, READ IT. Make sure you know what each and every charge on the bill or claims report is for. If you don't understand or believe you have been overcharged, call your provider or insurance company.
