Identity Theft Protection Against Insurance Defrauding in Healthcare

The healthcare sector has been the most occupied and busy industry comparatively.  Healthcare is free in some developed countries, but the United States is considered to have the most expensive healthcare on the planet. Healthcare expenditures in the United States amounted to $12,318 per individual in 2021. In Germany, that number stood at $7,383, 40 percent lower. Heretofore, America languishes behind other nations in several aspects, such as life expectancy and health insurance coverage.

Hence, in the U.S., most healthcare expenses are covered by insurance companies. Therefore, the risk of identity theft is on the edge for the healthcare sector. It requires identity theft protection to preclude forgery and enable the hospitals to know their patient. 

This article will explore the use of technology in healthcare and how insurance companies and hospitals save them from encountering identity fraud. 

Critical Characteristics of the Article 

  • Understanding what identity verification is 
  • identity theft protection for insurance companies 
  • Digital identity verification solutions to dissuade identity fraud 
  • The process of identity verification with its functionality 
  • User identity authentication for ongoing verification 

Comprehensive Identity Verification In Healthcare 

Identity verification is the process of validating the patients before onboarding the hospital and inquiring that they are the same individual as mentioned in the credentials. This is a thorough process of identifying the patients before even the start of their treatment or at the time when they claim for insurance. On-spot verification can be performed through facial recognition or biometrics, which is a fast and accurate way of identification. 

The industries involved can also opt for document verification to ensure the legitimacy of the patients. Thus, identity verification precludes the smart frauds that hospitals and insurance companies encounter due to the expensive healthcare. 

The Necessity of Verification Identity In Insurance Companies 

Identity theft protection is a primal factor in insurance companies determining that the patient and insurer are the same person. Individuals worldwide require medical assistance whenever anything happens to their health or they have an accident. In the United States, it is known that healthcare coverage is more expensive than the monthly salaries of the average citizen. Thus, insurance companies provide the U.S. citizens with allowances to cover their healthcare. The following is how the Insurance covers the healthcare expenses:

Premium: The patient pays a monthly fee for insurance coverage or the installments of their total bill.

Deductible: The payment that the patients must pay out of their own pockets before the insurance claims of the insurance.

Co-Payments/Co-Insurance: After meeting the deductible, the patient may still have to pay a portion of the cost for each medical service or prescription.

Out-of-Pocket Maximum: Once the patient has paid up to a certain limit for deductibles, co-pays, and co-insurance. The insurance covers 100% of covered services for the rest of the year.

Therefore, when insurance  companies are paying huge bills, they require verification identity to ensure that they have paid for a legitimate person,

Digital Identity Verification To Dissuade Identity Theft 

The digital identity verification is prevalent in dissuading identity theft and ensuring compliance with the system online. It is considered to be more accurate and quick in verifying the individual’s identity from anywhere at any time. Moreover, digital services ensure that a person has not previously been involved in any same case or fraudulent activities. It validates the person from different databases of public and private sectors for the robust identity theft protection.

How is Identity Verification Online Proceeded? 

The identity verification online is a form of electronic identification that verifies digital copies of official IDs. It encompasses many different ways to eliminate the risk of healthcare and insurance fraud. Document verification, digital ID verification, database verification, and selfie verification are some of the most common forms of identity verification today.

However,  in hospitals, the patients get verified through selfies and ID documents. The patients click a picture through their camera with ID cards and are sent to the online validation services. These verification services then accurately and quickly verify the person to be admitted to the hospital in a more efficient way. 

User Identity Authentication For Continual Verification of Insured 

For identity theft protection, continual authentication is necessary when the patient is admitted and claims the insurance. The user identity authentication is a constant process of verifying the patient that can be done by using repetitive face scans, 2-factor authentication, and verifying their documents with a multilayer approach. This ensures that the patient has not changed during his treatment in the hospital and has not stolen anyone’s identity. 

Final Statement 

The expensive costs and complexities within the healthcare sector, particularly in the United States, underscore the critical importance of robust identity theft protection measures. With healthcare costs primarily covered by insurance companies, strict verification protocols are essential to mitigate the risk of identity fraud. Digital identity verification is a decisive tool that offers swift and accurate validation while preventing deceitful activities. Through facial recognition, document validation, and continual authentication, healthcare organizations and insurance providers can ensure the legitimacy of patients.

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