Saturday, August 23, 2008

Has your medical ID been stolen?

One of the newest ways for criminals to wreak havoc on your personal privacy and your pocketbook is called "medical identity theft." As in other forms of identity theft, the basic scheme is that a criminal uses your identity to scam the medical system for either services of money.

In the simplest scam, doctors bill the the medical insurer for procedures that were never performed. In many cases, they split the profits with the patients that come in claiming they have specific ailments that require certain treatments that are ripe for fraud.

One increasingly common scenario is someone who uses your identity to receive an expensive surgery. Medical and security experts are expecting the trend to get worse as more of the 50+ million uninsured become desperate for medical care that they cannot afford. For example, In 2007, authorities say John Parsons, 57, of stole the identity of a mentally disabled friend to pay for heart bypass surgery at Northwestern Memorial Hospital in Chicago. According to a recent article in the Chicago Tribune highlights medical identity theft is one of the fastest growing forms of identity theft.

How Does It Happen?

In many cases, your medical records are actually stolen by employees at firms that provide services or handle medical billing. Often these people sell the records on the black market to criminal rings for anywhere from $5 to $30 a record. Of course, there are a variety of ways for people to forge your identity, including forged medical ID cards. A criminal can look up your personal information through a variety of public-domain sources, and piece together a legitimate looking ID card. But it is much easier and safer for criminals to buy records on the black market.

How can I protect myself?

The first thing you can do is tightly control your personal medical information. That means limiting the number of places that your personal information is stored. You never want to respond to any email or phone call from anyone claiming to be a Doctor of pharmacist and requesting your medical information unless you can verify their true identity. If you switch medical providers or move, see if you can have your records deleted from their system.

Second, you must closely monitor your medical bills. Stay on the lookout for any procedures that you are being billed for that were not performed. The very nature of medical billing makes this a painful chore. This is especially difficult for people who see a lot of different medical providers.
One idea is to maintain copies of your bills and pay attention to the procedure codes.

Third, try to keep your existing records as accurate as possible. The Health Insurance Portability and Accountability Act (HIPAA) of 1996 requires all organizations that hold your medical records to keep them accurate and respond to your requests. You can call any organization and ask for copy of your existing records to verify that they are accurate. The Health and Human Services Department publishes a list of consumer privacy rights under HIPAA.

Finally, if you think you have been a victim address it immediately. Report the problem to your health care provider and the local police. If people are have received care in your name, your medical records will be merged with theirs. Just like credit problems, false medical records can impact your ability to receive care and insurance in the future. Health care expert Judith Graham also provides some excellent Tips to Protect Your Medical Records.

Reporting Medical ID Theft: The Federal Trade Commission handles medical identity theft complaints and can be reached at 1-877-IDTHEFT (438-4338).

Security Tip: Always check your medical bills for accuracy. Look for unusual procedures or treatments that you do not recognize. As always, limit the amount of personal information you give out and give it ONLY to those who need it to provide your care.