The Ponemon Institute's 2013 Survey on Medical Identity Theft has revealed a 20-percent increase in medical identity theft incidents. According to the survey, medical identity theft now affects about 1.84 million Americans at a cost of $12 billion in out-of-pocket costs.
In addition to stealing your financial information, identity thieves can benefit from nabbing your medical information. For example, by using your name or insurance ID numbers, a thief can obtain medical treatment, buy prescription drugs and file claims with your insurer. CBS's Early Show recently reported on a medical identity theft case:
Unfortunately, many of these thefts involve "family fraud," in which a patient's family members steal medical information.
Imagine this scenario: An elderly woman asks a family member to take her to the doctor and then pick up some medications. She gives the family member her insurance card and her prescription drug card during the outing. The family member either fails to return the cards or writes down the identifying information before returning the cards.
A few months later, the elderly woman receives bills in her name for the family member's medical care. She also receives debt collection calls regarding unpaid medical bills tied to services she never received.
Medical identity theft can cause more than financial loss. Many victims receive the wrong diagnosis, an incorrect treatment, a treatment delay or the wrong medication when others compromise their medical identities.
The recently launched Medical Identity Fraud Alliance (MIFA) wants to promote medical identity fraud awareness. The organization plans to unite policymakers, health plans, law enforcement, consumer advocates, regulatory agencies, not-for-profit organizations and any organization that keeps a consumer's protected health information.
Together, MIFA hopes that these stakeholders will develop best practices for the prevention, remediation and detection of medical identity theft.
The FTC has posted a website designed to education consumers about detecting medical identity fraud, correcting mistakes in medical records and protecting medical information.
Edited by
Alisen Downey
