What Consumers Need to Understand about Health Insurance Fraud

In recent months, a new anti-fraud partnership was announced. Its purpose is to unite public insurers with private insurers to build a much stronger force against fraudulent companies offering health insurance. The partnership consists of HHS, DOJ, the National Association of Insurance Commissioners, property insurers, casualty insurers, private health insurance companies and anti-fraud organizations. It is a nonprofit alliance. With the new partnership, upward pressure on fraud rings is increased. In addition to this, the pressure on medical premiums will be reduced.

The organizations and companies backing this measure stress that information sharing is important for shedding light on how fraud rings operate. By utilizing joint efforts, the private and public insurance companies hope to put enough pressure on fraud rings that they are forced to cease their operations. These schemes, which are costly to consumers, have been growing in the past decade.

Officials said that the same dishonest medical providers are guilty of defrauding health insurance, workers compensation and auto coverage more as each year passes. In addition to these areas, they also defraud taxpayer-funded programs such as Medicaid and Medicare. Insurers everywhere are encouraged to take part in this effort, so consumers can expect to see their trusted insurance companies taking measures to prevent fraud.

If all sectors work together to provide information, compare evidence and offer leads, many fraud rings will be exposed. This means such operations can be shut down earlier, which means less consumers will be negatively affected. Groups or individuals operating these fraud rings will be prosecuted. As time passes, the group effort of insurers to crack down on fraud will make a difference in a variety of insurance programs. At the same time, the pressure on health premiums and government expenses will decrease.

On a short-term basis, this effort will be crucial for public insurance companies and policyholders facing financial strains due to a poor economy. In a long-term view, the extra pressure will lessen fraud rings greatly. Although criminals specializing in this type of fraud have found ways to resist prior efforts to eradicate their schemes, the new partnership will be much stronger and more organized. The increased pressure bringing down more crime rings will also result in a demand for much swifter justice for offenders.

With healthcare fraud totals hovering near the $80 billion mark, this measure comes at a crucial time. Each fraud ring may attempt to steal hundreds of millions of dollars. Shutting down several large-scale operations will bring the total down considerably. For more information about these measures, discuss the issue with an agent.

About Brian Hendricks

Brian Hendricks is the President of Fidelity Insurance Group. Brian started Fidelity in 2003 with 0 clients. Today Fidelity Insurance Group is a Premier Independent Insurance Agency in Florida with over 3,000 families and businesses insured. Brian currently serves on advisory boards for 2 of the largest property insurance companies in Florida. Knowlege, Integrity, and Committment are his and his agency's guiding principles.
This entry was posted in Health Insurance and tagged , , . Bookmark the permalink.