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July 21, 2002

 General medical ID theft education is lacking – over 1.4 million fraud victims in  Fraud can result in physical harm to consumers and significantly increases costs for public health care and private insurance.  Healthcare data breaches are on the rise and will continue with adoption of EMR technology.  Credit monitoring is different than health care data monitoring – there are alternative solutions and protections when it concerns personal healthcare data.  New organizations to meet the new security challenge - specialize in health care data breach remediation, medical ID alerts and data recovery.

 The Privacy Rights Clearinghouse recorded 690 breaches involving 23 million records from health care providers. Since 2005  A Harris poll shows that only 15% of US adults are familiar with the term “Medical Identity Theft”. Ponemon Institute Survey, 2011  Costs do decrease with education and proactive prevention. A 2012 Javelin study of financial service providers reported that identity fraud costs dropped by 44% (since 2004) as a result of early detection and expedited tracking programs.

 Alters medical history such as blood type, pre-existing conditions, prescription history, allergies, etc.  Limits ability to obtain insurance and fair insurance rates.  Treatments are limited or denied because insurance benefits are maxed out.  Denied life insurance due to inaccurate medical records. 3 Click Solutions July 21, 20025

 Increases state Medicaid FFS budgets - public health service programs are billed for treatments, prescriptions and services that were never rendered.  Adoption of digital health record technology in public health services invites a new type of criminal to the Medicaid arena (data recovery). 3 Click Solutions July 21, 20026

 Increases the cost of private insurance due to multiple people using one policy and making numerous claims.  Self insured employers won’t be able to afford employee plans & will look to government programs to cover health care costs. 3 Click Solutions July 21, 20027

1 Updated privacy requirements for MMIS system contractors and fiscal agents; and, strict review of HIE and HIX privacy and security compliance and data recovery. 2 Identify systems/technology that proactively identify fraud. 3 Educate consumers/patients of the importance of looking at their Explanation Of Benefits (EOB) statements or electronic EOB alerts to help protect their identity and flag potential fraud. 4 Require entities that experience breaches in medical identities to offer medical identity monitoring not credit monitoring. Credit observation is supplemental but does not address the primary challenges of medical ID fraud. Create standards for data recovery vendors. 8

Kymberly Messersmith, State Affairs Patrick Murphy, Federal Affairs Follow us on or Kymber3CS Follow us on 3-Click-Solutions 3 Click Solutions July 21,

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