Insurance fraud is something that is often not taken all that seriously, but it is really something that can have a detrimental effect on consumers in the long term. Insurance fraud can happen in a lot of ways, whether it is fraudulent behavior by another consumer or fraudulent behavior by an insurance company or agent, there are several good reasons to report insurance fraud. Here’s a look at a few of those reasons.
Insurance Fraud Drives Up Premium Costs
Whether you are speaking of medical insurance, car insurance, or even homeowner’s insurance, instances of fraud that go uncaught cost these company’s money. With enough instances of fraud, companies must raise premiums to compensate for their costs. Therefore, all consumers should have a collaborative interest in making sure to report insurance fraud when they suspect something is going on.
Insurance Fraud Can Be a Federal Crime
On some levels, it is important to report insurance fraud because it is a federal criminal activity. Those who commit fraud against organizations like Medicare, for example, could be charged with federal criminal charges.
The National Insurance Crime Bureau (NICB) works with law enforcement and various insurance companies to catch and combat fraud. There is a tool set up online by the NICB that whistleblowers can use to report fraudulent activity.
Reporting Insurance Fraud Can Be Rewarding
Because it is so important that insurance fraud is reported, those who do act as whistleblowers are sometimes rewarded for aiding in catching those committing the fraudulent acts. For example, if you report Medicare insurance fraud to the U.S. Department of Health and Human Services, you could earn a $1,000 reward.
The bottom line is this: reporting suspected fraudulent behavior is important as a consumer. Reach out to us at The Whistleblower for more information.