If identity thieves were to disregard your financial accounts and instead target your medical information, your first thought might well be, "Take my medical identity. Please." What nut would want your high cholesterol, trick knee, and family history of Alzheimer's? The answer is simple: one without health insurance who needs surgery or prescription drugs, or someone who sees a medical ID as the open sesame that will allow him or her to collect millions in false medical claims. These thieves don't actually want your medical ailments, of course, but by pretending to be you they can get what they're really after. Untangling the mess is hard: Unlike financial identity theft, there's no straightforward process for challenging false medical claims or correcting inaccurate medical records. For victims, the result can be thousands in unpaid charges, damaged credit, and bogus, possibly dangerous details cluttering up their medical records for years to come.
Medical identity theft currently accounts for just 3 percent of identity theft crimes, or 249,000 of the estimated 8.3 million people who had their identities lifted in 2005, according to the Federal Trade Commission. But as the push toward electronic medical records gains momentum, privacy experts worry those numbers may grow substantially. They're concerned that as doctors and hospitals switch from paper records to EMRs, as they're called, it may become easier for people to gain unauthorized access to sensitive patient information on a large scale. In addition, Microsoft, Revolution Health, and, just this week, Google have announced they're developing services that will allow consumers to store their health information online. Consumers may not even know their records have been compromised. In January, a new law took effect in California that requires providers to let consumers know if their medical information has been "breached." But only a handful of other states spell out notification requirements regarding unauthorized release of patient medical data. In contrast, most states have so-called breach laws that address accidental disclosures of financial information; these may also apply to medical data in certain instances. This month, Democratic Reps. Ed Markey of Massachusetts and Rahm Emanuel of Illinois, with support from several privacy groups and Microsoft, introduced a bill that would strengthen safeguards protecting access to consumers' medical information and make it a federal requirement to notify patients if their healthcare data get exposed.
Brandon Reagin didn't realize someone had snatched his medical identity until his mother called to tell him he was the lead suspect in a car theft in South Carolina in 2005. The 22-year-old marine had lost his wallet more than a year earlier while celebrating with friends after completing boot camp at Parris Island, near Beaufort, S.C. After his training, he was posted to California. But in South Carolina, Reagin lived on, as an impostor used his military ID and driver's license to not only test-drive new cars and then steal them but also visit hospitals on several occasions to treat kidney stones and an injured hand, running up nearly $20,000 in medical charges. Reagin found out about the unpaid hospital bills when he asked for a credit report following the car theft. "It was horrible," he says. "And what made it worse is that no one really knew what to do when it first started happening."
Reagin got nowhere with local police, but with the help of a state senator, he finally connected with the U.S. attorney's office in South Carolina. Staff there notified the Secret Service, and Reagin's doppelgänger, a 30-something guy named Arthur Watts from a tiny Midlands town called Blythewood, was eventually arrested. Watts pleaded guilty last September to identity theft and is awaiting sentencing.
But for Reagin, now serving in Iraq, the case isn't closed. Because of the outstanding hospital bills, the state intercepted his $362 tax refund, money he has yet to see. And although the hospitals no longer dun him for the unpaid balances, he's still trying to clean up his credit. (In addition to racking up medical bills, Watts opened cellphone and other accounts in Reagin's name and stole another car.) There's another potential problem: The hospitals Watts used may have medical records in Reagin's name for treatment he never received. If he visits his family in South Carolina and needs medical attention, those records could complicate his treatment, even cause harm. And if those medical records someday become electronically linked to one big nationwide health information network, as envisioned by the Bush administration, some privacy experts worry it may be impossible to find and correct the errors once they percolate through the vast interconnected system. Others argue that the technology could actually make tracking errors easier. The reality is unclear.