November 20, 2007
Health Insurance Fraud: We All Lose
Health Insurance fraud basically occurs I one of to ways. The first type is the “hard” fraud, when a party willfully takes on an insurance policy and stages an accident in order to benefit from the claim. The second type of health insurance fraud are soft fraud, where the claimant fudges or misinforms the insurance company on facts relevant to the claim. Soft frauds are very common in the United States. As a result of both hard and soft frauds, insurance companies have had to ensure a way to hedge their losses. This is done by passing on higher rates to all consumers and by making insurance a lot more difficult to acquire.