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Health Insurance Fraud Essay

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Faking a death is the most common type of life insurance fraud and has even been the plot of many movies, books and shows; although it is difficult to pull off. This occurs after a person takes out a life insurance policy on their self and after a few months of it being in effect they disappear and are declared dead. Then the beneficiary, a family member or spouse, then attempts to collect the life insurance policy

“Double-billing” is a scheme that is common in health insurance fraud. Doctors will bill for treatments that were not rendered or medically necessary as well as billing for a different service that is covered under the patient’s policy instead of billing for a treatment that is not covered. Patients may not even realize they are …show more content…

Insurers can refuse to pay claims or delete claims, deny or cancel coverage as well as underpay medical expenses. Fraudulent insurance companies can also collect premiums and pay for inexpensive care before disappearing if a large claim is filed. It has also been known for companies to look through insurer claims to intentionally drop them saying the insurer did not disclose previously.

One of the most targeted insurance lines is auto insurance fraud. There are many known schemes that take place in this fraud that can vary in seriousness and complexity. There are small schemes to defraud; filing multiple claims for a single injury, filing claims for vehicle damage or injuries that were not caused by and auto accident and padding the cost of repairs. The schemes can become more complex involving staged accidents, faking injury or falsely reporting a stolen vehicle.
Other schemes in auto insurance fraud occur mostly to avoid paying higher premiums. People might register their car in a different town so they have cheaper rates. It is also common for fake primary drivers to be listed to avoid a bad driving record or young drivers that are indeed the sole driver. Another scheme is a policy holder reporting a false auto insurance claim that occurred before the policy period

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