Maintain your legal status! Preventing Insurance Fraud

 Maintain your legal status! Preventing Insurance Fraud

Everyone is aware that the health insurance business is constantly boosting monthly prices, which many believe is unfair to you, the customer. However, the health insurance business has had to contend with rising levels of health insurance fraud. The costs of detecting and punishing fraud are then passed on to policyholders. However, many consumers are unaware of what health insurance fraud includes. With estimates ranging from $30 billion to more than $100 billion each year, health insurance fraud is a serious issue. Every health insurance policyholder should be aware of the definition and repercussions of health insurance fraud. This increases your ability to detect and combat fraud.

Medical insurance fraud

A variety of situations in the health care professional might be considered fraudulent. Some are related to acts performed by a patient, while others are related to actions taken by doctors, physicians, and other medical experts. In certain cases, health practitioners and allied entities commit fraud or engage in corruption in order to increase their profits.

In most cases, health insurance fraud is characterized as purposefully lying, misrepresenting, or hiding facts in order to obtain benefits from the insurance company. Essentially, you claim that you paid for specific medical treatments or charges out of pocket that you did not receive, and you are making claims to the insurance company for reimbursement. Another type of member fraud is the concealment of pre-existing ailments or the alteration of medical documentation so that non-policyholders or ineligible members gain medical benefits under your policy. Perhaps your sister is uninsured and needs medical treatment. It is health insurance fraud to have her use your name and coverage to settle the bills. While you may believe that this is a minor matter in comparison to your sister obtaining treatment, it is actually quite serious to your health insurance company and industry, and if you are detected, you may face penalties and potential incarceration.

Not only do policyholders commit fraud, but so do providers (doctors, hospitals, etc.). Physicians and hospitals receive money from insurance companies because they bill the insurance company for the services they perform for you. When providers commit fraud, they may overcharge the insurance company for services delivered or bill for services you never got. In these circumstances, you will almost certainly be requested to assist the insurance company's investigation.

Another sort of health insurance fraud that has lately emerged focuses on the policyholder rather than the insurance company. Fake insurance businesses or agents have emerged to sign unwary individuals up for coverage at unexpectedly cheap premium prices. For the first few months, they frequently behave similarly to a traditional insurance company, paying for minor medical claims such as physician visits. However, if you develop a more serious medical condition that necessitates treatment, the insurance company will vanish, as will the money you have been paying in premiums.

The healthcare system is impacted by health insurance fraud.

Fraud and corruption cost more than simply the money some get away with wherever they are located. The impacts of fraud and corruption in the healthcare system, like a stone tossed into a pond, can send ripples outwards, influencing everything in its path from costs and resources in the sector. As we discussed in an earlier article on insurance fraud and in our 2019 report on the Cost of International Health Insurance, the issues of corruption and fraudulent claims continue to be some of the most significant challenges the sector faces, and there is increasing use of technologies such as AI to combat this.

Detection of health insurance fraud

Health insurance is frequently a component in any and all of these instances, simply because insurance is where the money is. Insurance fraud is sometimes viewed as the simple act of falsifying facts or being purposefully dishonest in order to get a larger than average insurance claim. While it is fortunate that only a tiny fraction of individuals and organizations participate in fraudulent and unethical activities in the health sector, that small number of people costs tens of billions of dollars in the United States alone.

In the health insurance industry, there are several typical kinds of fraud, which might include:

- Undertaking medically unnecessary operations or treatments in order to increase insurance payouts.

- Taking bribes for patient referrals

- Falsifying testing to justify needless medical treatments - Billing insurers for services not given or padding claims with expenses for operations that did not occur.

- Up coding is the practice of invoicing for more expensive services or processes than were actually provided. 

- Unbundling is the practice of billing each stage of a procedure separately.

- Misrepresenting non-covered procedures 

- Waiving patient payments (co-pays or deductibles) and billing these expenses to the insurer or benefit plan

- Patients and insured persons are more straightforward in their fraudulent behavior. Many incidents of patient fraud entail simply concealing pre-existing diseases or lying about the nature and degree of an accident in order to collect larger insurance compensation. Indeed, incidents of wholly faked claims and physician shopping to get numerous prescriptions are prevalent, exacerbating the sector's struggle to eradicate fraudulent practices.

What can I do to assist in the fight against healthcare fraud?

If you work for a corporation, you should read our prior post on how to combat fraud. Individuals should consider the following to guarantee they are contributing to the integrity of the healthcare system:

- Protect your health insurance and personal information.

- Know your rights as a patient or insurance consumer, and don't be hesitant to ask your healthcare practitioner questions about treatments or billing items you don't understand.

If you require independent advice on treatments or care, seek it.

- Take charge of your own healthcare and treatment, and seek help from an authorized source.

- If you come across fraud, please report it.

In addition to assuring your own empowerment and protection, consider your societal impact on the health industry. 

The three most important fraud-related elements are:

- Poverty 

- Inadequate healthcare regulation 

- A lack of openness

Where can I get reliable, unbiased advice?

When you choose a broker like Pacific Prime, you'll get independent, unbiased advice on both the providers in a healthcare system and the insurers that provide coverage for it. We've been providing medical coverage options and assistance to individuals and corporate enterprises for over 20 years, and we've earned a reputation for making insurance simple. By partnering with us, you'll be guaranteed a team that is concerned not only with your well-being but also with the well-being of the industry in which we operate - which is why we're so interested in spreading as much information as possible about how we can all combat health insurance fraud and corruption.

Conclusion

The criterion for health insurance fraud is the same as it is for any other scam: if an offer appears too good to be true, it generally is. Remember to be truthful in your contacts with health insurance companies and to demand the same from them and your health care providers. Stay legal to avoid fines and prison time and to keep your health insurance coverage.