SPEAKING NOTES ON HEALTH INSURANCE FRAUDS

Similar documents
How To Get A Car Insurance Claim Form

Insurancece.com is as easy as 1, 2, 3

Fraud and the Government Internal Auditor

Accident Claim Filing Instructions

Lenders Property Reporting Policy

Fighting Insurance Fraud In Illinois: Insurers, Regulators and Consumers

TRIP CANCELLATION OR TRIP INTERRUPTION MEDICAL CLAIM FORM

First Name MI Last. Street Address (P.O. Boxes cannot be accepted) City State Zip. First Name MI Last

MISCELLANEOUS PROFESSIONAL LIABILITY INSURANCE

RESIDENT LIABILITY COVERAGE POLICY

DISABILITY CLAIM FORM

SENATE SUBMISSION VET FEE HELP

No Hiding Place. Insurance Fraud Exposed. September 2012

NATIONWIDE LIFE INSURANCE COMPANY NATIONAL CASUALTY COMPANY NATIONWIDE SPECIALTY INSURANCE CLAIM FORM INSTRUCTIONS

ACCIDENT INSURANCE CLAIM

IMPORTANT NOTICE EACH TEAM APPLYING FOR COVERAGE MUST BE A MEMBER OF AMERICAN YOUTH SPORTS ATHLETIC ASSOCIATION

HDFC Life SuperSavings Plan

Touchstone Health Training Guide: Fraud, Waste and Abuse Prevention

APPLICATION FOR EMPLOYEE BENEFIT PLAN FIDUCIARY INSURANCE

NOTIFICATION OF INJURY

ACCIDENT INSURANCE CLAIM

APPLICATION FOR MISCELLANEOUS PROFESSIONAL LIABILITY INSURANCE FOR STANDARDS AND SPECIFICATIONS

Claimant Section: Insured s Name: Relationship to Insured: Self Child. Policy #: Phone Number: ( ) Check if this is a new address

WHISTLE BLOWER POLICY / VIGIL MECHANISM SHCIL

ASSEMBLY BANKING AND INSURANCE COMMITTEE STATEMENT TO SENATE COMMITTEE SUBSTITUTE FOR. SENATE, No. 63 STATE OF NEW JERSEY DATED: MAY 5, 2003

MOTOR CARRIER APPLICATION FOR TRUCKERS INSURANCE FOR NON-TRUCKING LIABILITY AND VEHICLE PHYSICAL DAMAGE COVERAGE

Insuring Agreement Limit Deductible Underlying Limit. 1. Employee Theft $ $ $ 2. Employee Theft Client Premises $ $ $

Thank you for this important information. Should you have any questions, please call us at (800)

Basic principles of Accounting

New Business Transmittal Checklist

Mailing Address: 711 High Street Des Moines, IA

Supplemental Insurance Claim Form Packet

DISABILITY INCOME/OFFICE OVERHEAD EXPENSE CLAIM INSTRUCTIONS (PLEASE KEEP THIS NOTICE FOR FUTURE REFERENCE)

AMERICAN NATIONAL INSURANCE COMPANY CREDIT INSURANCE DIVISION P. O. BOX * SAN ANTONIO, TEXAS

Leaders Life Insurance Accident Claim Filing Instructions

Insurance Law... Terms you need to understand: Concepts you need to master:

PROFESSIONAL LIABILITY INSURANCE ADD LAWYER INFORMATION SUPPLEMENT

The Insurance Handbook

MOTOR CARRIER QUESTIONNAIRE FOR TRUCKERS INSURANCE FOR NON-TRUCKING LIABILITY AND VEHICLE PHYSICAL DAMAGE COVERAGE

Act Now! GIVE YOUR FAMILY PEAK PROTECTION. Group Long Term Disability Insurance Conversion Plan Kit

ACCIDENT CLAIM FORM. Daytime telephone No. Patient s full name Date of birth Relationship to policyowner

CODE OF ETHICS FOR INSURANCE INDUSTRY PROFESSIONALS

GROUP LIFE INSURANCE CLAIM PACKET (Death)

Miscellaneous Professional Liability Application

CRITICAL ILLNESS CLAIMS

Accident Claim Filing Instructions

INFORMATION TO BE PROVIDED IN SALES BROCHURE. LIC s NEW JEEVAN ANAND (UIN: 512N279V01)

RISK CONTROL. Workers compensation best practices risk management guide. Risk Management Guide

Short Term Productions Application

Provided By Touchstone Consulting Group Workers Compensation Employer Penalties

INSURANCE COMPANY PROFESSIONAL LIABILITY INSURANCE APPLICATION

ANTI-FRAUD POLICY Adopted August 13, 2015

Claim Filing Instructions

Prime Staffing-Fraud, Waste and Abuse Prevention Training Guide Designed for First-tier, Downstream and Related Entities

Title Agents Professional Liability Application

ACCIDENT CLAIM FORM. 5. Was patient hospitalized? Yes No NAME OF HOSPITAL CITY STATE

Glossary of Vehicle Insurance Fraud Terms

Monetary Authority of Singapore INSURANCE BUSINESS - INSURANCE FRAUD RISK

ANALYTICAL TESTING LABORATORY ERRORS AND OMISSIONS INSURANCE APPLICATION CLAIMS MADE POLICY

NATIONWIDE LIFE INSURANCE COMPANY NATIONAL CASUALTY COMPANY NATIONWIDE SPECIALTY INSURANCE CLAIM FORM

What to Expect Whe n Yo u Ha v e A Cl a i m

Underwritten By: ACE American Insurance Company Philadelphia, PA 19106

CLAIMS AND SETTLEMENT

INTERNATIONAL STANDARD ON AUDITING 240 THE AUDITOR S RESPONSIBILITIES RELATING TO FRAUD IN AN AUDIT OF FINANCIAL STATEMENTS CONTENTS

May 29, Dear Injured Camper or Staff Member and Family:

THE PRESIDENT S BUDGET AND THE MEDICARE TRIGGER by James Horney and Richard Kogan

The forms must be completed by a qualified person and signed with their occupational title as per its respective form.

Using Life Insurance for Pension Maximization

DIRECTORS, OFFICERS AND COMPANY LIABILITY INSURANCE POLICY APPLICATION

Allied Health Professional Liability Insurance Application Form

You also may have purchased the Hospital Cash Rider and/or the Disability Income Benefit Rider. Refer to your policy for detail information.

To file a claim: If you have any questions or need additional assistance, please contact our Claim office at

INDIAN ASSOCIATION OF STRUCTURAL ENGINEERS PROFESSIONAL LIABILITY OF A STRUCTURAL ENGINEER. C 109, LGF, Shivalik, Near Malviya Nagar, New Delhi

AMERICAN NATIONAL INSURANCE COMPANY CREDIT INSURANCE DIVISION P. O. BOX * SAN ANTONIO, TEXAS

NON OWNED & HIRED AUTO

OMS NATIONAL INSURANCE COMPANY, RRG NEW BUSINESS ENTITY PROFESSIONAL LIABILITY APPLICATION

Credit Card Debt Protection Plan

JEWELRY APPRAISERS ERRORS AND OMISSIONS INSURANCE APPLICATION CLAIMS MADE POLICY

Sun Life Assurance Company of Canada

Professional Risk Facilities,

Detecting and Preventing Fraud, Waste and Abuse

Thank you. Should you have any questions, please call us at (800)

MISCELLANEOUS PROFESSIONAL LIABILITY AND PREMISES LIABILITY INSURANCE APPLICATION

CONSULTANTS ERRORS AND OMISSIONS INSURANCE APPLICATION CLAIMS MADE POLICY

Instructions for Reporting an Injury

CONTINUATION OF GROUP TERM LIFE INSURANCE AND ACCIDENTAL DEATH & DISMEMBERMENT INSURANCE EMPLOYER INSTRUCTIONS

Oklahoma Insurance Department Pre-registration Education Materials for Navigators

WILLIAMSON COUNTY, TENNESSEE WORKERS COMPENSATION ANTI-FRAUD PLAN

Minimum Entry Age Maximum Entry Age. The minimum and maximum sum assured are $50,000 and $200,000* respectively.

Professional Surveyor's Application For Land Surveyors, Civil Engineers & Landscape Architects APP 07 06

Benefits fraud: Shrink the risk Gain group plan sustainability

Edelweiss Tokio Life - Accidental Death Benefit Rider

Safe Travels Claim Form

National Aluminium Company Ltd Fraud Prevention Policy

Insurance Fraud PRESENTED BY: James H. Cole, Esquire Jeffrey G. Rapattoni, Esquire of Marshall Dennehey Warner Coleman & Goggin

Name of Insurance Company to which Application is made (the Insurer ) INSURANCE AGENTS AND BROKERS PROFESSIONAL LIABILITY APPLICATION

POLICYHOLDER. Policy No.(s): Waiver of Premium (include life policies) Routine Pregnancy

DUE DILIGENCE IN MORTGAGE OR LOAN TRANSACTIONS

Lender Placed And Foreclosed Property Policy Maryland

Roush Insurance Services, Inc.

Transcription:

SPEAKING NOTES ON HEALTH INSURANCE FRAUDS In the emerging Insurance scenario in India, pricing and claim servicing will decide where an Insurance Company stands. In fact, in the days to come, claim cost will have a direct bearing on the pricing. Leakages and frauds on account of claim / underwriting will adversely affect the claim experience, which in turn will affect the pricing. Because of the misdeeds of a few and because of the lack of effective control by the Insurance Company, the genuine customers, who constitute the majority, will have to pay higher prices for Insurance Products than is actually warranted. In an open market with lot many option available, the consequence are very obvious. Not only because of higher prices it will deter new customer to come even existing client base will start dwindling. It is, therefore, essential for their own survival that Insurance Companies formulate a claim management philosophy where concern on account of leakages and frauds are taken care of properly. A transparent claims management policy in fact can be a good market strategy also. As long as there has been Insurance, there have been Insurance frauds. Let s accept the fact that the leakages and frauds cannot be eliminated altogether. But let s also accept the fact that they can be managed, controlled and kept within a limit. In common parlance fraud is associated with dishonesty, breach of trust, criminal deception, misappropriation, etc. However, fraud is not defined in I.P.C. But we can say that Whenever there is intention to deceive and by means of deceit to obtain an advantage there is fraud. If we extend this

concept to Insurance, then any act aimed at making profit from an Insurance contract constitute Insurance fraud, e.g. Non-disclosure of material fact with the intention of: - Getting reduced Insurance Premium rate - Getting claim settled, which otherwise could not have been possible. Of late, there have been spurt in Insurance related frauds and this cannot be viewed in isolation, as this also reflects on the shortcomings in the society we live in and partly explains the spurt. Economic disparity, unemployment falling moral values, materialism, etc. in their own way give rise to white collar crime in society. What is a fraudulent Insurance claim? An Insurance claim prepared with the intention to deceive, conceal or distort relevant information that eventually accounts for Health care benefits for an individual or a particular group is defined as fraudulent Health Insurance claim. Fraudulent and dishonest claims are a major morale and a moral hazard, not only for the Insurance Industry, but even for the entire nation s economy. Concrete proof as evidence including documentation, statements made by the Policyholder and his family members and even neighbours are taken into consideration. Frauds committed by a Policyholder could consist of members that are not eligible, concealment of age, concealment of pre-existing diseases, failure to report any vital information, providing false information regarding self or any

other family member, failure in disclosing previously settled or rejected claims, frauds in physician s prescriptions, false documents, false bills, exaggerated claims, etc. Essential Components of Health Insurance Fraud The essential components of fraud include intention to deceive, derive benefits from Insurance Industry, preparation of exaggerated or inflated claims or medical bills and malafide intention to induce the firm to pay more than it otherwise would. Devising innovative methods and tactics including pressure tactics, favouritism, nepotisum, etc. form a part of fraud, which is a hazard growing by leaps and bounds since the last decade. Frauds by Healthcare Provider or its employees include preparation of bogus claims by fake physicians, billing for products or services not rendered, exaggerated claims submission, billing prepared for higher level of services, modifications or alterations made in submission of claims, change in diagnosis of the patient, fake documentation, and fraud committed by the employees of a hospital or any other Healthcare product / service provider in order to make a quick buck. Broad Statistics in India and USA According to a recent survey, it is estimated that the number of false claims in the Industry is approximately 15% of total claims. The report suggests that the Healthcare Industry in India is losing approximately Rs.600-Rs.800 crores incurred on fraudulent claims annually. Health Insurance is bleeding sector with very high claims ratio. Hence, in order to make Health Insurance

a viable sector, it is essential to concentrate on elimination or minimization of fake claims. Being always vigilant is the only Insurance to plug the leakages and frauds. Some studies made in USA a couple of years back reveal that in USA, insurer lose $120 billion annually as fraudulent claims and about 90% of this relates to Health Insurance. This obviously does not include cases not detected. The study further revealed that if Insurance fraud was a business it would rank 56 th among the top Companies in USA. A very disturbing trend that was noticed was that most of the young respondents covered by the study did not see any wrong if the claims are exaggerated to cover Insurance premium / Policies, excess, etc. The position is not that alarming in India. However, MACT and Health segment claims are posing serious threats. In fact, in India no study has been made to assess the extent of frauds / leakages and what percentage it constitutes of the total claims paid. Any such study in reference to MACT and Health will bring out startling revelation. How do you detect fraud (Fraud Indicators) Claims made shortly after the Policy inception; Serious underwriting lapses observed while processing a claim; Insured overtly aggressive in pursuit of a quick settlement; Willing to accept small settlement rather than documentation all losses; Documents of doubtful nature; Insured behind in loan repayment; Accident un-witnessed and not promptly reported;

Invisible injury; High value leakage claim without any known casualty. One of the main reasons that medical fraud is such a prevalent practice is that nearly all of the parties involved find it favourable in some way. Many physicians see it as necessary to provide quality care for their patients. Many patients, although disapproving of the idea of fraud, are sometimes more willing to accept it when it affects their own medical care. Programme Administrators are often lenient on the issue of Insurance fraud, as they want to maximize the services of their providers. The most common perpetrators of Healthcare Insurance fraud are health care providers. One reason for this is that the historically prevailing attitude in the medical profession is one of fidelity to patients. This incentive can lead to fraudulent practices such as: Billing insurers for treatments not covered by the patient s Insurance Policy. To do this, physicians often bill for a different service, which is covered by the policy, than that which was rendered. Another motivation for Insurance fraud in the Healthcare Industry, just as in all other types of Insurance fraud, is a desire for financial gain. Upgrading, which involve billing for more expensive treatments than those actually provided; Providing and subsequently billing for treatments that are not medically necessary; Scheduling extra visits for patients;

Referring patients to another physician when no further treatment is actually necessary; Phantom billing, or billing for services not rendered; and Ganging, or billing for services to family members or other individuals who are accompanying the patient, but who did not personally receive any services. Fraud is committed by the Health Insurance Companies themselves. Insurance Companies intentionally not paying claims and deleting them from their systems, Denying and cancelling coverage, Blatant underpayment to hospitals and physicians beneath what are normal fees for care they provide. Although difficult to obtain the information, this fraud by Insurance Companies can be estimated by comparing revenues from premium payments and expenditures on Health claims. The detection of Insurance fraud generally occurs in two steps. The first step is to identify suspicious claims that have a higher possibility of being fraudulent. Fraudulent claims can be one of two types. They can be otherwise legitimate claims that are exaggerated or built up, or they can be false claims in which the damages claimed never actually occurred. For internal frauds: Strict adherence to system and procedure relating to underwriting and claims.

Internal check and balances to be strengthened and strictly enforced. Severe punishment to guilty persons and speedy disposal of CDA cases. Apart from their traditional role and functions, IAD and Vigilance should prepare system of prevention rather than having whole heap of records. Developing culture of work place ethics / integrity in the organization. People in Insurance Company should be educated that their indifference towards the leakages and malpractices in their offices has serious implications for them also, apart from the organization. For external frauds: Pursuits of civil litigation against these involved in fraud. Close cooperation with law enforcing agency. Seek the help of public spirited people / NGOs. Let s develop a culture where it becomes difficult to commit fraud / leakages and get away with it. This is in the best interest of insuring public at large, the Insurance Companies as also the society. Claims settlement being a key service parameter, and therefore, while every effort should be made for speedy settlement of claims, a balance has to be maintained to ensure claims of doubtful nature are properly examined and looked into before they are passed. *****