Healthcare fraud is costing American taxpayers up to $234 billion annually, based on estimates from the FBI. It’s no wonder that a stolen medical identity has a $50 street value, according to the World Privacy Forum – whereas a stolen social security number, on the other hand, only sells for $1. One form of healthcare fraud, known as medical identity theft, has its own staggering statistics: 1.42 million Americans were victims of medical identity theft in 2010, according to a 2011 study on patient data privacy and security by the Ponemon Institute. The report estimates the annual economic impact of medical identity theft to be $30.9 billion. Medical identity theft occurs when a person uses someone else’s medical record to obtain medical goods or services or to bill for medical goods and services that the patient did not receive. Thieves will also use a person’s social security number to obtain medical services or health insurance.

provides federal protections for personal health information held by covered entities and gives patients an array of rights with respect to that information. At the same time, the Privacy Rule is balanced so that it permits the disclosure of personal health information needed for patient care and other important purposes. The Security Rule specifies a series of administrative, physical, and technical safeguards for covered entities to use to assure the confidentiality, integrity, and availability of electronic protected health information.

Electronic Health Records An electronic health record (EHR) is computer-based document that is used by your doctor, your doctor’s staff, or a hospital. An EHR (similar to your old paper medical chart) contains health information from your doctor and other health care providers. A typical EHR has information about your health conditions, allergies, treatments, tests, and medications.

Electronic prescribing or e-prescribing (eRx) is a way for your doctor and other health care providers to send your prescriptions to your pharmacy electronically. Instead of writing out a prescription and having you take it to your drugstore, your doctor orders your medication through her office computer, which then sends a secure electronic prescription to your pharmacist.

Personal Health Records Your personal health record (PHR) is an online document with information about your health (and the health of family members) that you keep up to date for easy reference. Using your PHR, you can keep track of your family’s health information, such as the date of your children’s immunizations, last physical exam, major illnesses and operations, allergies, or a list of family medicines.