Medical Identity Theft: An Invisible Menace

By Dawn Handschuh, Personal Finance Writer   

Medical identity theft is an under-reported but rapidly growing form of fraud that occurs when one person uses another's name, Social Security number or health insurance identification — without that person's knowledge — to obtain medical services or to profit by falsifying medical claims.

Medical identity theft can be committed by:

• Unscrupulous physicians or nurses
• Uninsured individuals who need expensive medical treatment
• Sophisticated crime rings
• Friends or co-workers

Medical identity theft has long-term consequences:

• Damaged credit reports and ratings
• Harassment by debt collectors
• Loss of a job that requires a physical exam
• Denial of medical coverage

The havoc raised by medical identity theft can't be overemphasized. Health insurance fraud can even result in physical harm if, for example, the wrong blood type or prescription is recorded. Stay alert to identity theft crime

In this age of electronic record-keeping, it may be impossible to eliminate every possibility of medical identity theft, but by remaining vigilant and regularly monitoring your medical and financial records, you can greatly increase your chances of catching potential health insurance fraud early and minimizing the damage.

Footnotes

¹ "Medical Identity Theft: The Information Crime That Can Kill You,"World Privacy Forum, May 3, 2006