6 Reasons to Care About Fraud: Medical Insurance Fraud, Part II

6 Reasons to Care About Fraud: Medical Insurance Fraud, Part II

by Angela Bass, March 23, 2016

Often, our insurance policies only come into our minds when we find ourselves needing to file a claim. The other 364 days a year, our monthly premiums are deducted from our bank accounts on an automatic basis — out of sight and out of mind. You may want to take a closer look at your policy though, especially when it comes to using your insurance. Things might not be what they seem. For example, you could be treated for a condition you don’t have, or your medical records could claim you received a treatment that you did not. Now that you know this, is your insurance policy and monthly premium still just an afterthought? There are many reasons to care about fraud.

Price of dishonesty

Here are the top reasons why you need to pay attention to medical insurance fraud. Also be aware of the ways it can ruin your finances and even destroy your health, according to the Coalition Against Insurance Fraud, a consumer rights alliance based in Washington, D.C.

  • Drained Coverage

Your coverage limits might be drained by worthless and unnecessary treatments.

  • Destroyed Finances

Inflated or fake medical bills can increase your co-payment beyond your ability to pay. Bill collectors may come after you, leaving you with a damaged credit score. When you buy fake health insurance, you may be hit with huge bills that could drain your life savings.

  • False Medical Records

Insurers decide your premium based on information in your medical records. If your medical records contains false information you could end up paying higher premiums, or even be denied coverage.

  • Premiums rise

Your health premiums will rise because insurance companies pass the cost of fraud onto all policyholders. Higher health premiums discourage employers from offering these benefits to their employees.

  • Distress or death

Receiving bogus treatments can cause pain, stress or even threaten your health to the point of death.

  • Tax Dollars Stolen

Billions of taxpayer dollars go toward paying fraudulent claims against Medicare, Medicaid, and other taxpayer-funded health programs each year. Your tax dollars stolen!

Sky-high lies

The price of dishonesty is sky-high considering it can ruin your quality of life!

In an ideal world, you wouldn’t wonder if your health insurer is ripping you off, or if your doctor is telling the truth about a procedure they say you need. What it really comes down to is that knowing how your money is being used and abused is your responsibility.

For more articles on insurance scams

Did you miss our “Recognizing Medical Insurance Fraud” post?


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This information is provided for general consumer educational purposes only and is not intended to provide legal, tax or investment advice.


Angela Bass

Angela Bass

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Angela joined Asurea as the Content Marketing Writer in September 2015. She is also a freelance multimedia journalist, having written and produced stories for Land & People Magazine, The Baltimore Sun, California Health Report, NPR's Latino USA, PRI's The World and KALW's Crosscurrents, among others. In 2014, she founded Storybrook Media, which provides video production services to nonprofits and small businesses. She holds a Master’s in Journalism from UC Berkeley and a BA in Creative Writing from San Francisco State.
Angela Bass