Yves here. I am bothered that this article describes the risk of exposure to medical identity theft but suggest remedies only after the victim sees evidence of a breach. A key point in this article on medical identify fraud is that it can be perpetrated with as little as medical insurance information and a driver’s license. Admittedly this loss can occur, as the article admits, when a wallet is pilfered. But it can also be the result of hacking. The article contends that thefts of medical data still occur primarily to perpetrate financial and not medical insurance fraud. Still….
A pet peeve of mine is the frequency with which various organizations want to take copies of a driver’s license when they don’t have very sound grounds for making that demand. Even federally insured financial institutions, aka your bank, are allowed to keep driver’s license copies only on a “temporary” basis.1 I doubt many are good about compliance but if you have time and energy, it might not hurt to make a demand.
I routinely resist demands to copy my license, including when getting procedures at hospitals. I say it is fine for them to sight it to verify identity but not to copy it.2 I have generally prevailed. Note I haven’t tried invoking the argument that even banks aren’t allowed to take and keep a driver’s license copy….what are their policies regarding permanent removal of the record? 3 Similarly, Labcorp asks for you to insert your license in their obnoxious recently-installed patient check-in devices to be scanned and presumably copied. I never do that and instead input my data….which of course does not include anything from any government ID.
By Michelle Andrews, a contributing writer and former columnist for KFF Health News. whose work has appeared frequently in The New York Times, where she wrote the Money and Medicine column, as well as in Money, Fortune Small Business, National Geographic and Women’s Health magazines, among others. Originally published at KFF Health News
After HCA Healthcare announced this month that the personal identification data of roughly 11 million HCA patients in 20 states had been exposed in a breach, people may be justifiably concerned that their own medical data and identities could be stolen.
Consumers should realize that such “medical identity” fraud can happen in several ways, from a large-scale breach to individual theft of someone’s data.
Just ask Evelyn Miller. The first sign something was amiss was a text Miller received from an Emory University Hospital emergency department informing her that her wait time to be seen was 30 minutes to 1 hour. That’s weird, she thought. She no longer lives in Atlanta and hadn’t used that hospital system in years. Then she got a second text, similar to the first. Must be spam, she thought.
When she got a call the next day from an Emory staffer named Michael to discuss the diagnostic results from her ER visit, she knew something was definitely wrong. “It amazed me someone could get registered with another person’s name and no ID was checked or anything,” Miller said.
And while the name and date of birth the staffer had on record for her were correct, Miller’s address was not. She now lives in Blairsville, Georgia, a few hours north of Atlanta. Michael said he’d correct the problem. The next week, she got a bill from Emory for more than $3,600.
After an unsatisfactory conversation with someone in the hospital’s billing department, Miller sent a letter to the hospital’s privacy officer. Miller recalled writing: “I think there’s something going on, that someone is using my information, and the visit and the charges appear to be fraudulent.”
When contacted, Emory Healthcare spokesperson Janet Christenbury declined to comment on Miller’s case specifically but did say, “We take these matters seriously and work with our teams to ensure our processes and procedures are followed.”
Miller, 63, a retired health care administrator, was savvier than many about what might have occurred. The average person may have no idea a problem like this can arise until long after a theft occurs.
“The majority of victims find out when they’re trying to move on with their lives, if bills have gone to collections,” said Eva Velasquez, president and CEO of the Identity Theft Resource Center, a nonprofit that provides free assistance to victims of identity theft. Someone may apply for a mortgage, for example, and learn their credit is ruined due to unpaid medical bills for care they didn’t receive.
It’s a double whammy. Unlike other forms of identity fraud, medical identity thieves may steal not only their victims’ personal data — Social Security number, date of birth, address — but also information about their medical records and care, potentially putting their health at risk.
“Sometimes people can’t get their prescriptions, if their records are mixed with someone else’s,” Velasquez said. “Maybe you won’t be able to get treatment that you need. There are serious implications.”
A theft may affect just one person whose insurance card gets stolen or “borrowed” to pay for health care, or it may result from a data breach, as HCA Healthcare experienced. Such large-scale breaches are more likely to be used in financial fraud schemes than to get medical care, experts say.
Compared with other types of identity fraud, medical identity theft is rare. In 2022, for example, the Federal Trade Commission received 27,821 reports of medical identity theft, while reports for identity theft related to new credit card accounts totaled more than 400,000.
Medical identity theft also presents itself in different ways.
One Thief, One Victim
If someone gets ahold of another person’s health insurance number and driver’s license or other ID, they may be able to use it to receive medical services in someone else’s name.
Busy hospital emergency departments may make an attractive target for fraudsters. Procedures typically require patients to present insurance and photo identification information at check-in, said Rade Vukmir, an emergency physician in Pittsburgh and a spokesperson for the American College of Emergency Physicians. But these facilities also don’t want to put people off from getting care, and people who are uninsured or disadvantaged might not have those documents.
“We want to treat that population,” he said. “We’re America’s safety net. We always provide care.”
Medical identity theft can happen if someone loses a wallet with their insurance card in it, for example, or a piece of mail from their insurer goes astray. But it doesn’t occur only among strangers. The victim often knows the thief and may even be in on the “friendly fraud,” as it’s called. According to one study, nearly half of people who failed to report medical identity theft said it was because they knew the thief.
For example, one person might have a higher copayment for emergency department visits, Vukmir said, so they let a family member, such as a cousin or a sibling, use their insurance card to get medical care.
“Usually, in those cases, it wasn’t an emergency,” said Vukmir.
Gangs of Thieves, Millions of Victims
In 2022, 707 health care data breaches affected nearly 52 million patients, according to an analysis of data from the Department of Health and Human Services’ Office for Civil Rights by the HIPAA Journal, which tracks compliance with health care data privacy law. Under federal law, health care organizations must notify individuals when their medical data has been exposed through a breach.
The largest health care data breach to date occurred in 2015, when nearly 80 million Anthem records were exposed. Though the 2022 figures for incidents among all health plans were slightly lower than the year before, there has been a clear upward trend in recent years in breaches, which are typically caused by hacking or IT incidents.
The American Hospital Association is “very concerned” about foreign-based hacking groups from countries like Russia, China, North Korea, and Iran, said John Riggi, the national adviser for cybersecurity and risk for the American Hospital Association.
Riggi said the personal information in people’s medical records may be sold in bulk to criminals who create phony providers to submit fraudulent claims on a mass scale that can result in hundreds of millions of dollars in Medicaid, Medicare, or other insurance fraud. Or they may use the information to create fake identities to apply for loans, mortgages, or credit cards.
“They flee with the money, and the individual is left to deal with it,” Riggi said.
Health plans could take lessons from the financial services industry to detect red flags, Riggi said. Financial institutions have sophisticated algorithms to identify purchasing and other patterns that are out of the ordinary, Riggi said. In health care, such mechanisms could be used to flag claims in which a provider is located more than 1,000 miles from where a patient lives, for example, or sees a patient for conditions that don’t jibe with their age or health status.
AHIP, an insurance industry trade group, didn’t respond to requests for comment.
What Consumers Can Do
Consumers should generally monitor the notices and bills they receive from insurers and providers and contact them immediately about anything suspicious.
In Miller’s case, it’s unclear whether her problem was due to an administrative snafu, such as another patient with the same name, or medical identity theft. But within a month of her initial call, the hospital removed the charges and assured her that her medical record had been disentangled from the other patient’s.
Other steps to take:
- Go to the FTC’s identity theft site to learn about next steps and file an identity theft report, if appropriate.
- If someone has used your name, contact every provider who may have been involved and ask for a copy of your medical records, then report any errors to your medical providers.
- Notify your health plan’s fraud department and send a copy of the FTC identity theft report.
- File free fraud alerts with the three major credit reporting agencies and get free credit reports from them. Consider filing a police report. If your health plan offers free credit or identity theft monitoring following a breach, take advantage of it.
“It’s best to proceed as if your data has been compromised and will be for sale,” said Velasquez, whose organization offers free assistance in recovering from identity theft. “Don’t be afraid to ask for help.”
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1 See the highlighted language:
A little-known federal law imposes restrictions on federally insured financial institutions in connection with copying and retaining copies of state-issued driver’s licenses and similar identification cards when accounts, products or services are requested through online applications.
The statute, part of the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018, applies to situations involving online requests by an individual to open an account or obtain any other financial product or service from a federally insured financial institution. The law (titled, “Making online banking initiation legal and easy”) permits a financial institution to copy and temporarily store an individual’s state ID card in an electronic format only for certain purposes.
Under the law, financial institutions may use the information obtained from copying and storing a state ID card to:
- Verify the authenticity of the identification card;
- Verify the identity of the individual; and
- Comply with legal requirements related to opening an account or obtaining a financial product or service, such as the requirements of the federal Bank Secrecy Act.
The law further provides that upon copying and storing a state ID card for the permitted account opening or related product or service request, a financial institution must permanently delete any image of the ID card and any copies of the image. The law preempts any state law that conflicts with the above federal provisions.
https://www.gfrlaw.com/what-we-do/insights/your-institution-handling-drivers-license-copies-correctly
2 The place I have had the least success in resisting these requests is in NYC buildings who regularly copy IDs as a condition of entry. Most when probed claim to wipe them daily, but that’s not much protection from a rogue employee. I have what amounts to burner ID for this purpose (a valid looking and current looking state ID that is actually not current) but I am not sure if that buys me much more safety.
3 Admittedly I have the luxury that I am not in a network so I don’t have to accept the lax security procedures of medical providers. The only time my balking at unwarranted demands for information led me to reject dealing with a provider was for an MRI imaging center recommended by a NYC orthopedist because he thought they did a particularly good job. They wanted my Social Security number to register me. I said I was unwilling to provide that and my insurer did not use SSNs as identifiers. They said too bad, we won’t treat you without that. I said fine, no appointment.
Note many medical intake forms ask for a SSN. I have never provided it and just about never have been given grief about it. You can normally politely stare down the admin staff who don’t want to tell the doctor that he lost a new patient over that.
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I’m very careful in showing someone my drivers license. I don’t permit someone to copy it.People need to be very careful about sharing information. There are too man crooks out there ready to steal it.I once discovered strange charges on one of my credit cards. I immediately contacted the card company and canceled the card. They removed the charge and issued me a new card. People need to always look at their credit card bill to verify that they made a charge. If you didn’t immediately notify the credit card company.
Your financial identity is pretty much for sale, but instead of going to the highest bidder is to the lowest form of criminals. I always have assumed these folks, whether individually or in groups, move among the darkest corners of the internet. Added that for a recent medical visit with my primary, I yielded to the entire “prior to visit” form filling as it allowed me time to think through my answers & probably did me a favor on my one visit.
I also don’t think that medical facility billing practices are really up to snuff. Make everything automated to the point where billing mistakes can become, perhaps, intractable. The amount of paperwork to complete last year for cataract surgery was beyond the pale, and one has to watch the billing process like a hawk.
This article propagates a big lie.
Identity theft is theft from the business, not from the consumer. It is the business that extends credit (ie service without advance payment) to the thief. The consumer has nothing taken from them.
The problem is unduly creditor friendly laws that enable companies to hassle the consumer when, in fact, it is the business/creditor that should eat the entire thing.
The whole concept of “identity” as being something that “belongs” to a consumer is, in my opinion, a big lie. It benefits large corporations. And places a burden on their customers.
There’s a certain logic to your point, but it ignores the power relations in real life. In fact, this exact concept was used to screw me over during my one direct experience with ID theft (that I know about). Someone had been using my identity in another state, and left a trail of bad debts that I only discovered when I tried to get a mortgage. One of the bad debts was owed to a power company, and I was told that in order to dispute it, I had to get a police report from the locality where the power was delivered (which was probably BS, but I had no leverage in this situation). I dutifully called the police department, who refused to file a report because they said the victim was the power company, not me. I ended up paying that glassbowl’s power bill because the cascading costs of losing the mortgage would have been worse.
You are right on. The practical reality is that the big lie works because of the way the law allows, in this instance, the power company, to use out of court means to enforce its debt claim (the credit reporting issue). I would take your case and sue the snot out of that power company. It’d be fun.
Credit reporting is another weird flip. The credit bureaus sell information about consumers. The information is only valuable if it is accurate. And the bureaus have set it up so that people are incentivized to keep their files accurate. Some people have so internalized this incentive to help a private business that they think of it as something akin to a civic duty. It’s so weird.
Thought exercise: a man goes to a bank and convinces the manager that he is an authorized agent of Microsoft, and so borrows $1M. Now, the bank realizes it is not being paid back, and so presents its claim to Microsoft. Microsoft points out that the bank was defrauded. I’m confident it would not pay the bank, nor would it be reported to a credit bureau as a bad Microsoft debt.
You and Microsoft should have the same result. You don’t, because the law allows the bank (or the power company) certain unsupervised forms of leverage. It doesn’t have to be that way. It would not stand up in court, that’s for sure. It just never gets there.
This is likely a very stupid question but I live in Canada.
What happens if you don’t have a driver’s licence? Here I use a passport but I have never had anyone try to photocopy my licence, when I had one, or my passport.
You have to show a passport or other government photo ID. I believe many states offer ID cards to those who don’t want to be bothered with getting a driver’s license.
Also, every state has adults who are not physically able or otherwise allowed licenses, so they must have non-driver IDs of some sort.