How Identify Theft Makes Your Health Insurance Plan More Expensive

Healthcare reform legislation notwithstanding, the cost of health care has only continued to rise. Some people have taken desperate measures, and become perpetrators of medical identity theft in order to obtain treatment.



Unfortunately, it is innocent victims that suffer. Although everyone--regardless of their insurance status--can receive healthcare through an emergency room, they are often faced with bills afterwards. Unscrupulous individuals who attempt to get out of them through fraud hurt others.



All plans are susceptible, but those with health savings accounts (HSAs) should be especially concerned. That is because there is greater flexibility with purchases. While that is a boon to consumers, it also allows fraudsters to use the account for a wider array of procedures, including cosmetic surgery. In addition, since the money is already in the account, it will be harder to recover than an unpaid bill.



Despite that special concern, everyone is at risk. A victim's medical records will include information about medical procedures they never had, which will negatively impact both their finances and their health. The latter occurs when a doctor or nurse fails to distinguish the information and gives you (the real patient) inappropriate treatment, due to the information in the file regarding the other, fake patient.



Many people do not find out about medical identity theft until they attempt to file a claim for legitimate health care treatment and have it denied because they have gone over their annual or lifetime cap, or when their health insurance plan premiums increase due to an increased number of claims having been filed on their account.



There are several ways to catch medical identity theft before it has serious negative impact. Most policyholders ignore the explanation of benefits their health insurer sends them every year, but they should take a look at it. It will mention all of the medical visits, services, and equipment you used over the past year; if there is anything unusual in the document, you may be a victim. If you don't receive such forms, it is possible that an identity thief changed the account's address in order to escape your scrutiny. There is still a solution: call your health insurance company and ask for a complete list of benefits claims.



In the case that you are a victim of medical identity theft, consider putting a freeze on your accounts if you can confirm that a health care provider used your Social Security number or insurance information to inadvertently bill for fraudulent care. Then, file a police report and inform your insurer of the fraud. In most cases, the situation will eventually be resolved.

Article Source: http://www.articlesbase.com/insurance-articles/how-identify-theft-makes-your-health-insurance-plan-more-expensive-2188998.html

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Yamileth Medina is an up and coming expert on Family Health Insurance and Healthcare Reform. She aims to help people realize that they can find a quality health insurance plan right now. Yamileth lives in Miami, FL.