How Knowing about Health Insurance Frauds, can Save You!

How Knowing about Health Insurance Frauds, can Save You!

In the insurance industry, there is a lot of fraud. It costs insurance companies a lot of money, which translates to higher rates for policyholders. Health insurance premiums are rising as a result of a number of additional factors, including demographic shifts, the influence of inflation on healthcare costs, and exponential consumption rates.

However, the truth remains that medical insurance fraud has severely harmed the insurance industry, resulting in sky-high health insurance premiums. As a result, whenever someone takes advantage of the healthcare or health insurance system, it is individuals like you and me who pay the price.

Be that as it may, Health Insurance is such a crucial aspect that you must not deny and should be accustomed with a stringent one. Surely there are some dangers of Health insurance frauds which one needs to be aware of in order to be safe from being the victim of malpractices in the future, thus in this blog we will explain about all the factors related to Health Insurance Fraud and how can you be safe from them. So without further ado, let’s learn.

Health Insurance Fraud- What is it?

Health insurance fraud is described as the intentional and knowing execution of a scheme or treatment to render medically unnecessary treatments, or the overuse of services that result in unwarranted expenditures to the healthcare system, including health insurance providers. Patients, hospitals, doctors, vendors, suppliers, and even pharmacists are all potential offenders.

Health insurance fraud inflates healthcare costs unnecessarily, and the cost is ultimately borne by individuals or businesses in the form of higher insurance premiums. Furthermore, if a medical provider advises a patient to undergo needless tests or treatments, it can put the patient's health at danger.

According to a research by the many experts, the UAE loses more than AED 3.67 billion (USD 1 billion) a year due to health insurance fraud and abuse. According to the National news website, the UAE's insurance rates have risen by nearly 20% due to over-prescription of medicines and unneeded testing.

Health Insurance Fraud's most common Suspects

Typically, health insurance fraud consists of small violations such as ordering expensive and needless treatments such as an MRI scan or ultrasound, or providing patients with superfluous medications. It can also take the form of patients being kept in hospitals for longer than they need to be, particularly in intensive care units. If the patient has a health insurance policy, such infractions are typical.

Other common categories of healthcare fraud done by medical practitioners and patients are listed below:

  • Misrepresenting the service's dates or location
  • Misrepresenting the service provider
  • Billing for services that were not provided
  • Non-covered services are being billed.
  • Incorrect procedures or diagnoses are reported.
  • Co-payments and deductibles are waived.
  • Bribery is a form of corruption.
  • Using the services excessively

Health Insurance Fraud Prevention- Steps one can take to be safe from the Frauds.

Insurance companies are adamantly opposed to fraud since pursuing the culprits can be costly. As a result, taking a proactive approach to fraud prevention is necessary. Rather than waiting for someone to commit fraud and dealing with it after the damage has been done, insurance companies should build procedures to identify any possible fraud and take mitigation efforts once it is recognized. To take this proactive strategy, you'll need to take the following steps:

CREATE A SOLID FOUNDATION FOR YOUR PROJECT

Implementing a solid fundamental framework enables management to make informed decisions about investments and resource allocation, as well as answer questions such as how to determine whether a claim is legitimate or fraudulent. How do you check for fraud before processing a claim? What is the most effective method for automating fraud detection?

ADAPT TO CHANGING MARKET CONDITIONS

Because fraudsters are resourceful, adapt to changes in the insurance market. They quickly learn how to leverage the data analytics that insurance companies use to detect fraud. As a result, in order to combat fraud, the insurance business must adapt its strategy.

EMPLY A MULTI – TIERED STRATEGY

Fraud can be carried out in a variety of ways. As a result, the insurance business must employ all available techniques to detect suspected fraud. Gather evidence for vehicle accident claims using all available resources, such as photos and videos. To detect medical insurance fraud, it is critical to collect and organize data available online.

RECOGNIZE THE RISK OF FRAUD

This enables the quickest and most effective course of action to be taken in order to offset the losses caused by online health insurance fraud. Because resources are scarce, it's best to keep a laser-like focus on the potential offenders. Deliberate damage of property, such as a car, is an example of a false claim.

DETECTION OF FRAUD WITH DATA ANALYSIS

Data analytics can assist uncover habitual behaviors, which may then be used to establish a "suspicion score," which indicates a person's proclivity for fraud as well as the likelihood of fraud penetrating the insurance company's systems. To obtain data, this technique uses data mining tools and quantitative analysis.

CLAIMS SHOULD BE ROUTINELY RENEWED AND RESCORED

In order to discover fraud, you must be persistent. Combine this with predictive modeling and data analytics to keep an eye on suspected fraud all the time. Furthermore, these can be automated, which eliminates the need for manual management. Reviewing and rescoring suspicion scores on a regular basis can aid in the detection of fraud patterns.

Medical Insurance Fraud: How Employers can spot and prevent it

Employers have the benefit of teaching staff about suspected fraud. Here are a few pointers to consider in this regard:

  • Never sign a claim form that is partial or blank.
  • Do not sign several claims for the same doctor's appointment.
  • Notify your insurance company if your doctor offers to waive your deductible or co-payment.
  • Notify your insurance if you don't use a medical service after it has been pre-authorized.
  • Notify your insurer if a doctor offers to bill you for a service that isn't covered.
  • Keep a safe place for your health insurance card. Report any cards that have been lost or stolen as soon as possible.
  • Wherever possible, get your claims pre-authorized.
  • If you're not sure, ask questions. It is your right to be informed about the specifics of your medical care.
  • Treatments that aren't absolutely necessary should be avoided at all costs, as they may pose a health risk.

Conclusion

As the UAE's healthcare system develops, the number of medical insurance fraud cases will climb. As a result, the insurance business must take clear and tangible actions to ensure that fraud is successfully curtailed, if not entirely eradicated. For the benefit of one and all, an effective combination of technology, fraud training, and regular checks can help generate the required results. Therefore we hope this blog provided you with incite full information. For more information on other related aspects, feel free to check out our website.

 

By Om Chaudhary

29-Jun, 2021

Medical Insurance Related FAQ

Frequently Asked Questions

  • Why is it so essential to declare my pre-existing medical conditions?

    Patients are communicated to tell their physicians all about their medical history in order to get the best care, and health insurance policyholders are asked to tell their provider all about their pre-existing conditions in order to get the best coverage. Furthermore, if there are any inconsistencies in the medical insurance policy, the insurance company can cancel the policy.

  • What is the extent of medical insurance coverage in the UAE?

    The regional limit to which a health insurance policy's benefits are available is referred to as the scope of coverage. For example, in the UAE, health insurance with a definition of ‘Within the UAE' would only compensate policyholders for medical services received in the UAE.

  • Are family plans the cheapest health insurance available in the UAE?

    Family policies undeniably deliver some of the best coverage at the most affordable prices, making them one of the most cost-effective health insurance choices in the UAE. Even family health insurance policies, however, have their own limitations, such as a limited number of dependents and other constraints. When applying for a job, it is suggested that applicants spend some time reviewing the different inclusions and exclusions.

  • What are the Medical Insurance Policy for female in UAE?

    Medical insurance Policy for females are expensive because of the pregnancy related costs that occurs to the insurance companies. Whereas policy for female aged below 40 is too expensive compared to female aged above 40.