Overview
Healthcare fraud is theft by deception
It's a serious concern for the entire healthcare industry. According to estimates from the National Health Care Anti-Fraud Association (an industry trade group), 3-10% of what Americans spend on healthcare is lost to fraud every year — that’s between $30 billion and $140 billion a year.
What we’re doing about it
We investigate fraud through our Special Investigations Unit (SIU). This group works aggressively to address issues and concerns about fraud and abuse. The SIU’s mission is to prevent, detect, investigate and report fraud. When appropriate, they also recover money lost to healthcare fraud and abuse. The SIU works with members and their doctors and clinics to address fraud and abuse situations.
Examples
Examples of healthcare fraud
Doctor shopping
When individuals visit multiple physicians or emergency rooms to obtain several prescriptions for controlled substances
Identity swapping
Allowing an uninsured person to use another individual's insurance cards
Identity theft
The illegal use of another person's personal information to obtain medical services or prescription drugs
Ineligible dependents
Keeping an ex-spouse, former dependent, or even non-family members on an health insurance policy
Services not rendered
Billing for services or prescriptions that were never provided or dispensed
Unbundling
Billing separately for procedures and supplies that should be grouped under a single procedure or global fee
Upcoding
When a provider submits a claim for a more expensive service, supply or piece of equipment than what was actually provided
Telemarketing fraud
Involves providers not directly engaged in patient care using telemarketers to promote high-cost medical products or services
Misrepresenting services
Billing procedures under different names or using alternative Current Procedural Terminology (CPT) codes to obtain coverage for services not typically covered—such as cosmetic or experimental treatments
Kickbacks
When providers exchange money or things of value for the referral of patients for services that are not medically necessary or have no validity or diagnostic value, as well as waiving copays and/or deductibles
Durable Medical Equipment (DME) fraud
When DME companies use multiple provider numbers or business names to bill for both the rental and purchase of the same equipment. They might also bill for equipment or supplies never received by the patient.
Reporting fraud
What you can do
Members should always check their Explanation of Benefits (EOB) statement to make sure the charges from your providers are correct.
Be aware of the many types of fraud that can occur. If you see something concerning, please report it.
Contact us
If you suspect fraud, please call us at 1-800-382-2000, ext. 28363, submit a report online or email reportfraud@bluecrossmn.com.
You do not have to give your name. If you are calling after hours, please leave a message.
You can also mail or fax:
Blue Cross and Blue Shield of Minnesota
Special Investigations Unit
P.O. Box 64560
St. Paul, MN 55164-0560
Fax: (651) 662-1099