As many as 150 million working Americans are covered by health plans organized under ERISA. Given the scale of health insurance data breaches, there is a high probability that millions of them — and their health plans — will be a victim of fraud and identity theft.
More than 400 million health insurance identities have been breached or compromised since 2021 alone. Yet no breached entity, employer, third-party administrator (TPA) or health insurance carrier has offered any protection against identity theft and fraud against health insurance benefits. This is potentially a large, yet unaddressed risk to plan sponsors and their servicers that benefit brokers and advisers need to help their employer clients guard against.
