Disability Insurance Articles

Disability Insurance Fraud And Why It Can Significantly Affect Costs

2011-02-25

You're not planning on committing crimes like disability insurance fraud anytime soon, but your insurance rates can still rise because of it. Disability insurance quotes are affected by fraud committed by anyone who makes a claim for benefits, so even people who are entirely innocent will suffer from its effects when it's discovered. While most insurance fraud is designed to be undetectable, the massive losses companies incur due to its occurrence each year prompt a number of preventative measures and costly expenses for the rest of us.

Disability insurance fraud is when someone, either on their own, or with the cooperation of another, willfully makes false statements, misrepresents facts or withholds information so that they can collect disability insurance benefits they wouldn't otherwise be entitled to. While most state disability insurance legislation defines that these misrepresentations must be committed purposefully, it doesn't change the fact that insurers are on the lookout for any mistakes. If you fill out your forms incorrectly, you'll be subject to benefit delays, but you might also be thoroughly investigated or prosecuted.

While disability insurance fraud does increase the amount employers and policyholders must pay, states try to combat it in a number of other ways. Medical providers are routinely advised to report claims with incorrect Social Security numbers and claimants who are still working or are no longer disabled. It's important to find an online policy that you understand so that you aren't likely to make mistakes that raise these types of flags.

The disability insurance quotes you find will generally increase as time goes on, because disability insurance fraud doesn't stop. People constantly think of new ways to trick insurance companies out of money, and the more fraud that occurs, the harder it is for those who really need assistance to get any benefits. Your claims can be held up by insurance fraud, but your costs will also increase.

Patients searching for disability insurance quotes aren't the only ones who commit fraud. In fact, the majority of all health care fraud cases are committed by health care providers. These doctors will commonly "up-code," charging insurers for similar procedures they didn't even perform because they cost more, or simply create bills for more expensive services provided to patients who would not otherwise qualify for treatment.

Disability insurance fraud is too expensive to check for because so many claims are submitted on a regular basis. Insurers use computers systems to detect suspicious data, and you need to be on your guard. Make sure you fill out you insurance claims properly online, where you can request email help so you aren't treated like a fraudster.