TL/DR –
Scammers are using people’s medical information to con insurance companies into paying out large sums in a scam affecting people across Illinois. Cases have emerged where insurance companies have paid Aman Labscorp for Covid-19 tests that individuals say they never had, with NBC 5 Responds finding numerous similar complaints online about the company. The Federal Trade Commission warned that costs will eventually fall onto the consumer as insurance companies raise their costs to cover fraudulent charges, and it advises consumers to regularly check their Explanation of Benefits (EOB) to ensure the services billed match those received.
Illinois Scam Uses Medical Info to Trick Insurance Firms
In a scam sweeping across Illinois, fraudsters are manipulating medical information to trick insurance companies into large payouts. Victims often first notice when they receive explanations of benefits (EOB) letters, summaries of healthcare services charges, that don’t add up.
One such victim, Leo Danielides of Oak Brook, noticed discrepancies in his EOB late last year. He had received a LabCorp bill from a previously unknown place named Aman Labscorp. After receiving multiple EOBs for two Covid-19 tests that he never took, his suspicions were confirmed. His doctor’s office did not use Aman Labscorp, further adding to the mystery.
Despite not personally receiving a bill, Danielides took action. An online search of “Aman Labscorp” unearthed similar complaints of fraudulent charges for tests people claimed they never took. When contacting the company’s registered agent and president, they seemed oblivious to the complaints.
Aman Labscorp’s address listed in the National Healthcare Providers database led nowhere, with no apparent business existing there. A second address in Schaumburg was merely a virtual office receiving mail for small payments. The Hickory Hills strip mall owner listed as the company’s address mentioned potential lab establishment talks years ago, but these never materialized.
Although it might seem victimless, this scam impacts consumers directly. As Todd Kossow with the Federal Trade Commission explained, fraudulent bills will inevitably increase consumers’ costs. Described as “phantom billing,” this type of healthcare fraud involves billing for services or supplies never received. This scam flourished during the pandemic, primarily targeting Medicare patients. After the COVID-19 public emergency ended in May 2023, scammers shifted their focus to private insurers.
According to BlueCross BlueShield, Danielides’ insurer, Aman Labscorp’s actions form part of a nationwide COVID-19 testing fraud scheme. Danielides confirmed that the lab attempted to bill his insurance nine times, but the firm has now stopped paying these claims. To protect themselves, individuals are advised to treat their health insurance information like a credit card and regularly check their EOBs.
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