How to Prevent Medical Identity Theft

We all know the reality and the consequences associated with identity theft. Someone steals your identity. They open accounts in your name. Go on a shopping spree. And you spend the next 12 months trying to undue the damage.

Identity theft can haunt you for years. This is why we pay to have a service monitor our credit reports. Well unfortunately, identity theft doesn't stop with credit. People are clever, and they've crafted new ways to steal your identity. This doesn't involve shopping sprees or lavished vacation, but rather health care.

According to a 2006 National Center for Health Statistics report, approximately 43 million Americans did not have health insurance. Since insurance premiums increase each year, and our present economy doesn't allow much room for extra expenses (including necessary expenses), this figure has likely increased.

In a perfect world, people without health insurance would never get sick, have babies, or need surgery. But we don't live in a perfect world, and emergency rooms are constantly flooded with hard-working people who can't afford individual or family coverage, but earn too much to receive government assistance.

While most make the best of a bad situation and set-up a payment plan, others take it a step further and look for illegal ways to pay their medical expenses. Thus, the birth of medical identity theft.

Anyone can become a medical identity theft victim. All you need is a medical insurance card. Like identity theft, the repercussions can stay with you, in which you may be unable to obtain medical care. So, how do you handle the situation? That's easy...don't become a victim.

• Report lost of stolen insurance cards: The same way you keep tabs on your driver's license and credit cards, know the location of your medical insurance card at all times. Furthermore, if someone steals your purse or wallet, contact your insurance provider immediately. Tell them the situation and request a new ID number.

• Shred old medical statements: Everyone knows the danger of tossing a credit card statement into the garbage. That's why we shred our documents into a million pieces. Thieves look for any type of personal information. They may not be able to locate your credit card statement. But they can still have a good time with your medical information, especially if they can't afford insurance.

• Check your credit report for medical liens: Medical identity theft catches some people off guard. They don't know about the debt until they attempt to apply for a car loan or mortgage. But there's an easy solution. Check your credit report once or twice a year. Do you have any medical liens? If so, contact the bureaus and the health care provider. If necessary, file a police report.