If you’ve ever had your wallet stolen, you know the pain of losing cash and the annoyance of having to replace photos, frequent buyer and discount cards. The panic, however, really sets in when you imagine your credit cards and driver’s license in the hands of a thief.
Worse still, you may want to add one more item to the top of your list of most valuables – your medical insurance identification card.
Medical insurance fraud is one of the most dangerous forms of identity theft, and it threatens to both drain the economy and impact your personal life. According to the Federal Bureau of Investigation, this type of fraud costs some $60 billion a year, forcing the Department of Justice to make combating it a top priority. In February of this year, the DoJ’s anti-fraud task force recovered $4.1 billion that had been lost to Medicare and Medicaid fraud in 2011.
Yet beyond just dollars and cents, it’s also your health that’s at risk. James Quiggle, the director of communications for the Coalition Against Insurance Fraud, has worked in insurance fraud for more than a decade. He said medical insurance fraud can be broken down into three major categories. Listed below are tips that you can use to avoid becoming a victim.