Preventing medical ID theft

By Farnoosh Torabi, Special to amNewYork | AMPersonalFinance@yahoo.com

March 5, 2007

Identity theft -- the country's fastest growing crime -- comes in various shapes and sizes. A lesser-known form is medical identity theft.

"It's an old problem that people are becoming more aware of," says Byron Hollis, national anti-fraud director of the Blue Cross Blue Shield Association.

In fact, during the last 15 years, the public-interest group World Privacy Forum received some 20,000 medical ID theft complaints. But unlike traditional ID theft, medical ID theft cannot only hurt your finances; it may jeopardize your health.

How it happens

Medical ID theft can occur in a few ways. The most likely scenario is when someone steals an insurance card, often left in one's wallet.

Another way, Hollis said, is "if a medical employee gains access to your records for a legitimate purpose but hijacks it."

This can be an employee of a medical provider, like your dentist or doctor, or an insurance company. You may receive a questionable bill for a procedure or doctor visit you never received.

Worst-case scenario
One misfortune of ID theft is that someone may gain access to your health insurance policy and use up your allowances and caps for treatment.

"This can include prescription drugs, doctor's visits, dentist check-ups, etc.," said Adam Levin, co-founder of Identity Theft 911. If someone else is billing your insurance company, you may have little to no coverage left the next time you need serious medical attention.

The other worst-case scenario can be a major threat to your health.

"Two patients are now sharing one information file. That's very dangerous," said Linda Foley of the ID Theft Resource Center.

"There are horror stories about a compromised file leading to the wrong blood transfusions and things like that," she said.

Prevention
Treat your medical insurance card like you would credit cards, cash and your Social Security number -- safe and secure.

"An insurance card is like a Visa card with a million-dollar spending limit," Hollis said.

Ask to see your medical records. They're tough to access but be persistent.

Request a summary from your medical provider from the past year or six months.

If you're a victim
"This is a criminal act. It's a regular theft and it can also be prosecuted under federal statutes," Hollis said.

He recommends contacting the anti-fraud unit of your insurance company first to change your insurance ID number to prevent future losses. Next contact the police department's white-collar crime unit. After that, get in touch with your medical provider.

Sometimes the medical provider may be linked or involved in the crime, so it's best to call them last, after you've identified the perpetrator and are positive the medical provider is not involved.

(With Tim Chan)