Financial fraud in the private health insurance sector in Australia

Kathryn Flynn

Journal of Financial Crime, 2015, vol. 23, issue 1, 143-158

Abstract: Purpose - – The purpose of this article is to explore financial fraud in the private health insurance sector in Australia. Fraud in this sector has commonalities to other countries with similar health systems but in Australia it has garnered some unique characteristics. This article sheds light on these features, especially the fraught relationship between the private health funds and the public health insurance agency, Medicare and the problematic impact of thePrivacy Acton fraud detection and financial recovery. Design/methodology/approach - – A qualitative methodological approach was used, and interviews were conducted with fraud managers from Australia’s largest private health insurance funds and experts in fields connected to health fraud detection. Findings - – All funds reported a need for more technological resources and higher staffing levels to manage fraud. Inadequate resourcing has the predictable outcome of a low detection and recovery rate. The fund managers had differing approaches to recovery action and this ranged from police action, the use of debt recovery agencies, to derecognition from the health fund. As for present and future harm to the industry, the funds found on-line claiming platforms a major threat to the integrity of their insurance system. In addition, they all viewed thePrivacy Actas an impediment to managing fraud against their organizations and they desired that there be greater information sharing between themselves and Medicare. Originality/value - – This paper contributes to the knowledge of financial fraud in the private health insurance sector in Australia.

Keywords: Australia; Fraud; Medicare; Financial crime; Claims leakage; Private health insurance (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfcpps:jfc-06-2014-0032

DOI: 10.1108/JFC-06-2014-0032

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