All data breaches have two things in common: the need for prompt resolution and the need for a robust preparedness plan.
According to Ponemon Institute’s Second Annual Survey on Medical Identity Theft, we estimate that more than 1.49 million Americans have been targeted by this crime. With an average cost per victim of $20,663 the total national economic impact of medical identity theft crimes is more than $30 billion.
Today’s headlines trumpet yet another high-profile medical data breach, this time through Health Net. This corporate catastrophe reminds us of the increasing hazard of medical fraud, which is the most expensive and time consuming to resolve of all types of identity theft . The second annual National Study on Medical Identity Theft, fielded by the Ponemon Institute provides further insight into this pervasive problem and how it affects consumers.
The proliferation of state data breach notification laws, substantive state information security laws (such as the Massachusetts data security standards), and FTC and private lawsuits on information security matters has led to heightened attention to information security in both IT budgets and staffing and in terms of legal resources. With budget pressures all around (not to mention time pressures and the pressures of other duties that in-house counsel already has), the question becomes: How can my organization lower the time and dollar costs associated with information security when there is a breach?
While state laws requiring “reasonable” data security have had a positive impact, data breach notification laws have had the most profound effect on the improvement of data security. These laws have motivated companies – through negative incentives – to improve data security to avoid publicity, embarrassment, and the risk of notification.
A few weeks ago I discussed a few preventative measures a healthcare business can implement to protect itself from the damages of medical fraud. However, the fight against medical fraud requires support from many groups, including the U.S. Government. Bringing new tools to the fight, the Obama Administration recently announced aggressive new measures it is [...]
Medical fraud is occurring at an alarming rate and is expected to cost the US healthcare system $100 billion a year. Medical fraudsters vary in their sophistication and range from organized crime organizations to individuals preying on senior citizens. For example, one crime syndicate stole the identities of doctors and thousands of patients to make [...]
Legislation has been introduced in Congress to crack down on Medicare and Medicaid fraud. This legislation comes at a time when incidents of medical fraud are on the rise and the Obama Administration is poised to role out sweeping healthcare reform. Medical fraud is estimated to cost the U.S. health care system $100 billion a [...]
Recently I addressed the importance of having plans in place to protect personal health information in light of the sharp increase in healthcare data breaches. Unfortunately, research studies are finding that incidents of fraud resulting from exposed healthcare data are on the rise.