what is the percentage of insurance fraud for college students saying they are in college but they are not?

Question

I have several folks that have told me that they are still allowing their kids tages 18 to 23, to ride on their health insurance even though they know their kid has either dropped out of high school or college. How does the Insurance Industry handle this type of fraud...??? the folks i spoke too did not have any special requirements from the insurance company. How do they check this for fraud? If they don't they should....I see no special requirements.....And this type of fraud will come out of the pockets of the tax payers...which is you and I.
In the State of NJ, which requires, secondary and college students over the age of 18 , to continue to be covered on the parents medical insurance until the age of 23.
What is the insurance industry's procedure for continued medical for kids over 18 and still in school?

Answer 1

Most insurance companies require documentation that the student is not only in school but taking the requisite number of credit hours to be considered full time.

The burder on this fraud doesn't fall on the tax payers but on the insurance companies since they are private companies and not government bodies. They, in turn, pass it on to those legitimately insured.

Answer 2

It all depends upon the insurance company. One company will cover kids up to age 30 if they are still living at home and not married. Most policies, however, require the kids to be in school and will cover them until they reach their 24th birthday.

The insurance company doesn't check if the kids are in school until there is a claim that will cost the company more than they've received in premium. Then if the kids are not in school the claim will be denied and the child removed from the policy. So in effect the parents are just wasting their money because they are paying for something that will never be used.

Answer 3

Actually, that is pretty low for major insurance carriers. They confirm your enrollment each semester. My insurance companies both did that (Aetna & Blue Cross).

Answer 4

Taxpayers don't pay for what a private insurance company does.