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Thursday, Mar 28, 2024

ID Theft Comes to Health Fairs

A federal grand jury has charged Yoav Stein, former owner and operator of Zone Healing Health and Wellness Center in Encino, with 13 counts of health care fraud and two counts of aggravated identity theft. For small-business owners and human resources managers, what stands out in the Stein investigation is his alleged method of operation. According to the indictment, he was a chiropractor who attended corporate health fairs where he persuaded employees to give him their insurance information. Stein offered to sell Transcutaneous Electrical Nerve Stimulus devices, which send low-voltage electrical currents to targeted body parts for pain relief, prosecutors allege. He would tell fair attendees that the cost of the equipment was covered by their insurance with no “out-of-pocket” expense. After obtaining the information, Stein allegedly submitted fraudulent claims to health plans. They covered office visits that never occurred and medical equipment that was never purchased, according to the indictment. The fraud totaled more than $300,000. Stein is on the lam and believed to be in Israel, according to the Justice Department. Barry Cohn, president of RGEB Employee Benefits in Canoga Park, said both employers and workers need to guard their insurance identity from theft. “The only people that should have your health information are your doctors,” Cohn said. “You should never give out your health information to anyone else, especially at health fairs.” Medical identity theft is a growing problem, with 2.3 million Americans victimized in 2014, a nearly 22 percent increase from the previous year, according to the Coalition Against Insurance Fraud in Washington, D.C. Health fairs are designed to provide basic medical screenings. Typically, companies host these events for their employees. “If (Stein) was doing this at health fairs, then there were employers allowing him to be there,” Cohn explained. “Employers need to vet the process more.” – Stephanie Henkel

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