Every year, over two million Americans become victims of medical identity theft. One way to ward off this form of fraud is by safeguarding your health insurance information.
As people are cautious to provide their Social Security numbers due to identity theft concerns, some healthcare providers and patients may hesitate to share them. Luckily, legislation is currently being considered that would remove Social Security numbers from Medicare cards altogether.
Why Do They Need Your SSN?
When filling out forms at a doctor’s office, the person assisting may request your Social Security Number (SSN). Never provide this sensitive data without first getting consent. SSNs are personal identifiers which, if stolen, could result in serious identity theft issues and also are used by the federal government for tracking people’s health records; many individuals feel reluctant to disclose this number for this reason.
Businesses dealing with money and finances typically request your Social Security number (SSN) so they can run credit checks. But this doesn’t obligate you to give out your SSN.
Health insurers need your Social Security Number (SSN) so they can authenticate you and check for red flags that could prevent them from providing coverage. When applying for private health policies during open enrollment or requesting changes to existing plans, your SSN will be needed in order for insurers to process your request successfully.
When signing up for an employer-sponsored group health plan, providing your Social Security Number (SSN) is crucial in order for the company to properly administer your coverage and report it back to the IRS as part of your taxes. It’s one of few occasions where it is legally obligatory.
When applying for financial assistance through an ACA marketplace, your Social Security Number (SSN) is also required in order to run data matches against trusted sources like the Social Security Administration and Internal Revenue Service – this allows the marketplaces to identify eligible users quickly without the need to submit additional documentation as proof of eligibility for coverage.
Policygenius and other reputable life insurance providers, like Policygenius, may require your Social Security Number in order to conduct identity checks before offering you a policy. This measure is particularly essential given that identity theft has become such an epidemic across America; your SSN being your most unique identifier. Before providing it however, always inquire why an insurer needs this data from you; if they cannot give an acceptable explanation then walk away from them immediately.
Are They Legally Required to Ask for Your SSN?
Medicare or employer-sponsored group policies do not typically require individuals to disclose their Social Security numbers (SSNs). However, when enrolling in marketplace coverage through an official navigator or broker or during a Special Enrollment Period (SEP), the government’s Marketplace requires you provide your SSN for verification that your presence in the country lawfully and your income meet requirements to receive financial subsidies.
Under the federal Privacy Act of 1974, any government agency requesting your SSN must explain why and how it will be used. They cannot deny you services or benefits for refusing to share it unless specifically mandated by federal law.
Your Social Security Number (SSN) is essential in providing life insurance underwriters with enough information about you to accurately evaluate the type of policy coverage that’s appropriate for your needs and determine your risk profile. In addition to using SSNs as identification documents, driver’s licenses and medical records may also help verify who they believe you to be.
Health insurers will often request your Social Security Number as it can assist them in tracking down any billing issues that arise. While not legally mandated to give out this information, be mindful when sharing personal data such as SSNs.
As healthcare providers adopt the new Medicare Beneficiary Identifier (MBI), which has recently been introduced, healthcare providers may no longer require your Social Security Number as identification. Instead, this new 11-character identifier was designed to be more secure and easier for healthcare providers to read than an SSN number. If any healthcare provider still asks for your SSN as identification, politely but firmly ask them to switch over to using MBIs for increased security and communication ease. As a consumer it’s important that you know your rights as well as remain up-to-date regarding how your personal data may be shared between parties.
Do They Need Your SSN to Bill You?
As part of filling out forms at a doctor’s office, hospital, or other medical facility, you may be asked for your Social Security number – something which should not be required of you; doing so would pose a privacy risk and enable identity thieves to steal it for fraudulent use.
Insurance companies require your Social Security number (SSN) in order to verify your identity and search any criminal histories or MVR reports related to driving records. With identity theft being one of America’s fastest-growing crimes, it’s wise to be wary when providing any company your SSN.
Life insurance companies rely on your SSN to identify and validate you before offering you a policy. They also use it to investigate your financial history and credit report as well as any existing policies in your name – this helps them assess how much coverage is necessary and calculate premiums accordingly.
Insurance companies require your Social Security Number (SSN) in order to verify if you qualify for Medicare, and under the Affordable Care Act the Internal Revenue Service (IRS) requires insurance companies to send members Form 1095-B that details minimum essential coverage – this form includes your name, SSN or Taxpayer Identification Number (TIN), months covered as well as information about whether coverage was cancelled.
Healthcare providers also require your Social Security Number (SSN) in order to confirm and bill you for services rendered. Some hospitals and medical facilities use patient identifiers instead; most still prefer using your SSN as it remains consistent no matter which healthcare system or provider you visit.
Given the potential dangers associated with using your Social Security Number (SSN), many companies are transitioning away from using it as their primary identifier. Some employers no longer require applicants to submit their SSN on employment applications while others have begun using alternative identifiers such as an employee ID number or personal health ID; holistic practitioners, for instance, increasingly favor using an Employer Identification Number (EIN) rather than their private SSN as identification of their practice.
Do They Need Your SSN to Verify Your Identity?
Insurance companies generally request Social Security Numbers as a way of verifying identity. Your SSN can be connected to various systems which verify everything from GPA from college classes to criminal records and driving histories – so this form of identification verification should become standard in health and life insurance applications, along with driver’s license numbers (which can be verified with motor vehicle reports or MVRs).
Your Social Security Number (SSN) will also be required for those applying for financial assistance on the ACA marketplace application. The marketplace uses data matches with trusted sources like the Social Security Administration and IRS to verify key household details like income. If you fail to provide it or it can’t match with existing government records, you will be notified and may no longer qualify for coverage or financial help.
If you are applying for coverage outside the Marketplace, your employer or another third-party may need your SSN to verify employment and income. In such instances, these third parties are legally obliged to include a disclosure statement with their form that details why they require the data and how it will be used.
Individuals covered under private health insurance or marketplace plans typically don’t require their Social Security Number for coverage, though you should always check whether the company you’re dealing with has been approved to sell health insurance in your state. To be licensed to sell insurance in each state, licensed businesses must meet stringent standards set forth by state insurance commissioners governing compliance monitoring.
Though you’re not legally required to give your Social Security number (SSN) to health insurers, it is wise to consider why they ask and any repercussions if you opt out. With medical identity fraud on the rise – potentially costing thousands in lost wages and benefits as well as hundreds or even thousands in medical bills – taking measures to safeguard personal information is paramount for overall wellbeing.