(James Ruotolo is an insurance fraud technologist, thought leader, and the principal for insurance fraud solutions at SAS.)
The recent announcement by the Department of Health and Human Services and Department of Justice to form a National Fraud Prevention Partnership to address healthcare fraud is a step in the right direction. It's good to see industry groups such as the National Insurance Crime Bureau (NICB), Coalition Against Insurance Fraud (CAIF) and National Health Care Anti-Fraud Association (NHCAA) standing side by side with health and p&c insurers, as well as government agencies. For too long, the insurance industry has struggled to share information effectively to combat fraud. Yet all the while, as NICB president Joseph Wehrle told the audience at a recent industry conference, “Fraudsters don't discriminate. They will take money from anybody.”
While this partnership will likely benefit p&c carriers in the long run, it’s unclear exactly how. The announcements made thus far are light on details. In speaking with members of the partnership, a common refrain of “it’s very early in the process" is heard. On a positive note, it seems that there has been progress made by the various subcommittees of the partnership, which meet regularly to identify opportunities for quick wins.