Beware of Health Insurance Frauds

There are deceptive offers for medical services on the marketplace.

Federal Bureau of Investigation

Common health insurance frauds often come with "free" products that are not needed or never delivered. Older citizens are frequent targets of Medicare schemes.

Common health insurance frauds often come with "free" products that are not needed or never delivered. Older citizens are frequent targets of Medicare schemes, the Federal Bureau of Investigation warns.

Medical Equipment Fraud
Equipment manufacturers offer "free" products to individuals. Insurers are then charged for products that were never needed in the first place and/or may not have been delivered.

Rolling Lab Schemes
Unnecessary and sometimes fake tests are given to individuals at health clubs, retirement homes, or shopping malls and billed to insurance companies or Medicare.

Medicare Fraud
Medicare fraud, the FBI reports, can take the form of any of the health insurance frauds, such as those mentioned above. Senior citizens are frequent targets of Medicare schemes, especially by equipment manufacturers who offer seniors "free" medical products in exchange for their Medicare numbers.

Because a physician has to sign a form certifying that equipment or testing is needed before Medicare pays for it, con artists fake signatures or bribe corrupt doctors to sign the forms. Once a signature is in place, the manufacturers bill Medicare for merchandise or service that was not needed or was not ordered.

Tips to Avoid Health Insurance Fraud

Here are ways to stay clear of frauds:

• Never sign blank insurance claim forms.
• Never give blanket authorization to a medical provider to bill for services rendered.
• Ask your medical providers what they will charge and what you will be expected to pay out-of-pocket.
• Carefully review your insurer's explanation of the statement of benefits. Call your insurer and provider if you have questions.
• Do not do business with door-to-door or telephone salespeople who tell you that services or medical equipment are free.
• Give your insurance/Medicare identification only to those who have provided you with medical services.
• Keep accurate records of all health care appointments.
• Know if your physician has ordered equipment for you.

This article, and hundreds more, can be found on the NEA Member Benefits web site in the "Member Library" section: http://www.neamb.com/consumer_articles.jsp