The Double Burden of Medical Debt and Identity Theft

When most people think of identity theft, they picture stolen credit cards, hacked bank accounts, or someone vacationing on their identity overseas. But one of the fastest-growing and most devastating forms of fraud involves medical debt and identity theft happening in tandem; two issues that often collide in ways that leave consumers in a bad place.

How Identity Theft Can Create Medical Debt

Medical identity theft occurs when someone uses your personal information, like your Social Security number, health insurance ID, or Medicare details, to receive medical services or prescription drugs in your name; this can result in bills that you never actually incurred. By the time you realize what’s happening, collectors may already be calling.

The Real-Life Consequences

When medical identity theft happens, the damage is twofold:

• Financial Strain: Victims may be saddled with thousands in fraudulent medical debt. If bills go unpaid while disputes are pending, collections may come calling, which can impact your credit score.
• Health Risks: Fraudulent medical records can include incorrect information about your health history, medications, or allergies, which can put you in danger if doctors rely on those records during future treatments.
• Emotional Toll: Victims often feel trapped between proving they didn’t receive the care and fending off relentless medical debt collectors.

What to Do If You’re a Victim

If you suspect medical identity theft, the first step is to ask for an itemized bill for any charges you don’t recognize. Then, contact your health insurer immediately to report the suspected fraud and request new account numbers to prevent the issue from continuing. You should also file a complaint with the Federal Trade Commission at IdentityTheft.gov, which will walk you through the recovery process. Don’t forget to alert the credit bureaus as well. 

If debt collectors keep coming after you for charges that aren’t yours, you should speak with an identity theft lawyer. 

Medical Debt and Identity Theft – Protecting Yourself 

Get into the habit of shredding old medical statements and insurance documents. Review your Explanation of Benefits regularly to spot any suspicious charges early. Also, ensure your patient portals and insurance logins are protected with strong, unique passwords. Always be vigilant against phishing attempts; scammers may pose as hospitals or insurance companies to obtain your personal information.

If you are incurring medical debt tied to identity theft, contact our team today. We can help you navigate disputes, push back against collectors, and protect your financial future.