Identity Theft Prevention and Medical Identity Theft Protection
More than likely, you're familiar with identity theft, but have you ever heard of medical identity theft? If not, medical identity theft is what occurs when a thief hijacks your insurance data or even your social security number in order to obtain medical benefits under your good name. Unfortunately, this form of fraud is becoming increasingly more common, especially when it involves desperate cases relating to prescription drug needs or emergency room visits. Financial security and medical record breaches are the two main facets of medical identity theft. This crime, if it goes long undetected, can mean severe consequences for the victim. <br>
Compared to other types of identity fraud, medical ID theft is very difficult to detect and remedy. Past cases of medical and insurance fraud have ruined victims' medical records, health histories, and have even resulted in faulty diagnoses. People who have been victimized have been known to receive large bills for medications, tests and even surgeries they never had. In order to maintain your own identity theft protection, always be on the lookout for medical records, notifications and bills that aren't applicable to your own health history. Receiving a bill for a strange medical service or getting inquiries from doctors or nurses about conditions unknown to you probably means that you have been victimized by someone who has used your data for their own health benefits. Not only can victims of medical identity theft experience ruined credit, but they could also face life-threatening consequences, like receiving a blood transfusion with the wrong blood type.<br>
If a thief goes so far as to steal your insurance information, most likely they will neglect to pay co-pays and deductibles that come along with your insurance benefits. Because of this, victims are often stuck with medical debts and damaged credit reports as a result of unpaid bills. The first step towards identity theft prevention is constantly monitoring your credit reports, credit card statements, insurance bills and even medical records. With approximately one in every six Americans without medical insurance, this type of identity fraud is very tempting for many desperate people, particularly in emergency situations. Unfortunately, if someone uses your insurance data in an ER or urgent care facility, chances are they'll get away with it as these centers are less likely to catch the error and cannot refuse care.<br>
Our government has yet to publish any real statistics regarding how many medical identity fraud cases occur in the U.S. each year, but hospitals and insurance companies concur that this crime is becoming highly prevalent. The World Privacy Forum estimates that 250,000 U.S. citizens have been victimized so far. This already incredible number is only becoming larger. That being said, never underestimate the ability of a thief to gain access to your information, despite how safeguarded you think it is. Remember that insurance providers distribute patient information among each other, so even though you may have corrected a once tainted medical history, it may come back to haunt you if you ever decide to switch providers.<br>
As you probably know, your insurance company will not hesitate to refuse coverage to you if your history indicates that you've used certain drugs or you have specific pre-existing conditions. This means that if a thief merges your medical history with their own, you could be denied coverage when you need it the most because of the services or prescriptions they sought and/or received under your name. This is another instance in which medical fraud could potentially be life-threatening. Here are a few identity theft prevention techniques for you to keep in mind for your own protection:<br> • Any and all correspondences from your insurance company should be opened upon receipt. If you're notified of or billed for a service you didn't receive, start the dispute process right away. Always shred any documents containing your personal information before throwing them out.<br> • If you receive bills or notices from a medical office or hospital where you haven't been a patient, read them very carefully as they could be data breach notices or bills for services you never had. Inform credit agencies of these right away so they can implement the proper fraud alerts. <br> • Frequently monitor your credit report for any indication of identity theft, medical or otherwise. Inapplicable medical bills or insurance notices must be disputed immediately with the appropriate authorities.<br> • If you believe yourself to have been the victim of medical identity fraud, file a complaint with the Federal Trade Commission ( http://www.ftc.gov/idtheft ) by calling their Identity Theft Hotline, toll-free: 1-877-IDTHEFT. (438-4338).
About the Author
Denise Richardson is an author, freelance writer and advocate who educates the public on identity theft protection, identity theft prevention and credit reporting issues. She is a Board member of American Consumer Credit Education Support Services, a non-profit organization dedicated to educating the public on credit matters. She is founder of http://www.givemebackmycredit.com .
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