The healthcare business can be one of the most fraudulent industries to be found. Every day, thousands of citizens find themselves under-protected by their insurance or even not at all. The smallest change in your life can lead to your healthcare provider removing you from your insurance plan. Unfortunately, in most cases, this is done out of protection for themselves as well.
While it’s more common to see the insurance company taking advantage of poor citizens who have no other options when it comes to health insurance, many people have turned to scam the companies. The healthcare industry is full of fraud, scams, and corruptions which has required the government to take action to prevent these issues.
As a citizen, you are protected from insurance companies and healthcare providers from taking advantage of you. This protection is provided by the HIPAA Compliance solutions act passed in 1996. With this act in place, fraud in the healthcare industry has taken a dramatic decrease. However, it’s not perfect, so some of the work still rests on you. Know your rights and protect yourself from fraud.
HIPAA Compliance
The Health Insurance Portability and Accountability Act (HIPAA) hold the primary function of preventing fraud and protecting data. Data leaks occur in every industry but having your medical records and financial information leaked can be catastrophic. Any unauthorized access of someone’s medical records is prevented with HIPAA.
HIPAA has set an industry standard for the healthcare and insurance industries. Businesses and hospitals must comply with the regulations or face shut down or severe fines. All of these enforcements are backed up by the government so that citizens can know they’re protected even when a company denies their rights.
Who is covered by HIPAA?
Plenty of different entities have a stake in the healthcare industry. This means that there are multiple parties that are at risk of being taken advantage of. HIPAA regulations do its best to ensure that each party is properly cared for and protected from fraud, scams, and corruption.
- Providers – It’s not just the citizens who are hurt by fraud in the healthcare industry. Insurance and healthcare providers are scammed just as often if not more as people attempt insurance scams with false claims.
- Healthcare plans – Offering someone the right plan for their health can be confusing and involves many different steps and considerations. Companies and plans such as Medicare and Medicaid will be protected under HIPAA regulations.
- Clearinghouses – This entity will greatly benefit you. These are the people who transfer your private data when necessary. They create, store, and transfer your information. Having a data breach of a clearinghouse will cause your information to be leaked.
- You – You’re the one that this act was made for. Preventing fraud in the medical industry means protecting you and your data so that’s what the HIPAA does. It prevents healthcare providers and insurance companies from manipulating and taking advantage of the patient.
