Undercover testing of the Patient Protection and Affordable Care Act (PPACA) enrollment by an independent government agency exposed serious vulnerabilities to identity fraud. The Government Accountability Office (GAO) testified on Capitol Hill that its investigation revealed virtually no obstacles to the use of counterfeit identification documents for application enrollment.
PPACA provides for the establishment of health insurance exchanges, or marketplaces, where consumers can compare and select private health insurance plans. GAO created fictitious identities to apply for coverage through the federally facilitated exchanges in several states by phone, in-person, and online to test the controls and security for enrollment and application. In 11 out of 18 tests, GAO investigators were able to obtain subsidized coverage using fictitious identities with fraudulent documentation.
Andrew Meehan, Policy Director for Keeping IDentities Safe, stated,
“This most recent report once again underscores the danger that fake IDs pose to benefits fraud. The largest expansion in health care in recent memory should include safe guards against fraud. Technology and training to prevent ID fraud is not only available, but also cost effective when measured against the savings of reducing fraud.”
About Keeping IDentities Safe:
Keeping IDentities Safe is a 501 (c) (3) non-partisan, not for profit, crime prevention education public charity, supported by donor contributions from across the United States. Its slogan, “Working to protect the identity of every American”, embodies its commitment to higher standards for both government and private entities that issue identity credentials, especially state agencies that issue driver’s licenses and ID cards. Keeping IDentities Safe undertakes research projects addressing best practices for DMVs, compliance with federal laws and regulations, identity fraud prevention and related identity management topics. It provides research results and educational programs to the public and to state and federal officials. Keeping IDentities Safe is a member of the Document Security Alliance and of the American National Standards Institute.