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Blue Cross NC Home Policies and best practices Fraud, waste, and abuse Policies and Best Practices Fraud, waste, and abuse

Find out how to report and fight health care fraud, waste, and abuse (FWA).

Learn How to Report Fraud
What is health care fraud, waste, and abuse?
Fraud

An intentional or criminal misrepresentation resulting in personal or financial gain.

Waste

Practices that, directly or indirectly, result in unnecessary costs, such as overusing services. Waste is generally not considered to be caused by criminally negligent actions but rather by the misuse of resources.

Abuse

A reckless disregard or conduct that goes against and is inconsistent with acceptable business and/or medical practices resulting in greater reimbursement or services.

Types of health care fraud
Provider-related fraud

  • Phantom billing – When a provider charges for services that weren't performed or equipment that wasn't delivered.
  • Upcoding – When a provider bills an insurer for a service that's more expensive than what was actually provided, such as billing for a specialist when the patient saw a nurse or an intern. 
  • Overutilization/unnecessary care – When a provider conducts or requests unnecessary tests, surgeries, or other procedures to obtain additional payments or referral fees.
  • Misrepresenting services – When a provider conducts non-covered procedures on a patient and then submits claims to the insurer for different services that are covered under the patient’s plan.
  • Unbundling – When a provider bills an insurer separately for parts of a single procedure.
Non-provider related fraud

  • Masquerading as a health care professional – When an individual or group delivers health care services or equipment to a patient without a proper license.
  • Identity theft – When an individual uses another person’s health insurance or personal information to access health care services.
  • Doctor shopping – When a patient visits multiple practitioners to get several prescriptions for controlled substances.
  • Falsification – When an individual or group files fake claims to an insurer or alters amounts charged on claim forms or prescription receipts.
How do we fight health care fraud?

At Blue Cross and Blue Shield of North Carolina (Blue Cross NC), our mission is to improve the health and well-being of our customers and communities. One of the ways we do that is by working hard to protect our members, providers, agents, and business partners from health care fraud, waste, and abuse. This helps lower health care costs, protects personal information, and prevents future threats. 

To maximize our ability to prevent FWA, Blue Cross NC relies on its Special Investigations Unit (SIU). Our SIU works collaboratively with internal partners and external bodies, such as law enforcement and delegated entities, to identify, report, and prevent FWA

Learn More About SIU How health care fraud impacts you

The impact of health care fraud is widespread and affects providers, consumers, patients, communities, and businesses within the entire health care system. Between 4% and 10% of all health care expenditures are estimated to be potentially fraudulent. This loss directly impacts providers, patients, insurers, and government agencies through higher health care costs. Additionally, health care fraud often hurts patients who may be subjected to unnecessary or unsafe procedures or who may be the victims of identity theft.

What you can do Members Providers

Our biggest ally in the fight against health care fraud is you, our member. There are several ways you can protect yourself while helping to curb health care fraud in North Carolina.

  • Safeguard your insurance card by treating it the same as a credit card. Don’t lend your insurance card to others. Doing so is not only potentially criminal, but it can also pose a health risk to you through inaccurate medical records.
  • Beware of free services, especially if you’re asked to provide your insurance card. The service may not be free and could be fraudulently charged to your insurance company.
  • Closely examine your Explanation of Benefits (EOB), which you should receive in the mail following a doctor or hospital visit. Ensure the dates, places, and services billed were the ones you received.

Blue Cross NC partners with providers in the battle against health care fraud. We depend on you, our allies at the frontlines, to identify and report potential cases of fraud. Become familiar with the potential types of health care fraud so you can protect your patients, yourselves, and our communities.

How to report health care fraud

You have four options for reporting suspected fraud, waste, and abuse: online form, phone, email, or postal mail. When reporting, please provide as much information as possible to help our investigation team conduct a thorough review of the concern. One of our team members may reach out to you to gather additional information.

Online report form

Submit our online Fraud and Abuse Report Form. You can remain anonymous.

Complete Report Form
Confidential hotline

Call to report FWA with our 24-hour confidential hotline.

800-324-4963 (toll-free) 919-765-2464
Email

Email our SIU team at SIU@bcbsnc.com to report suspected FWA.

Note: Email may not be secure. We cannot guarantee the privacy of information sent by email. Please use caution when providing personal information. It is best to only provide enough information for the SIU to contact you.

Email SIU
Mail

Report suspected FWA by mailing our SIU team:

Blue Cross NC SIU
PO Box 25431
Durham, NC 27702-5431

Other organizations fighting fraud, waste, and abuse National Health Care Anti-Fraud Association US Department of Health and Human Services (HHS) Office of Inspector General⁠ North Carolina Department of Insurance⁠ Federal Trade Commission⁠ About Us Newsroom Blog Member Forms COVID-19 Transparency in Coverage Find Care Rights & Responsibilities Policies & Best Practices Privacy Policy Website User Agreement Fraud & Abuse Technical Information Contact Us Locations Careers

Blue Cross and Blue Shield of North Carolina does not discriminate on the basis of race, color, national origin, sex, age or disability in its health programs and activities. Learn more about our non-discrimination policy and no-cost services available to you.

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© 2026 Blue Cross and Blue Shield of North Carolina. ®, SM Marks of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield plans. All other marks and names are property of their respective owners. Blue Cross and Blue Shield of North Carolina is an independent licensee of the Blue Cross and Blue Shield Association.

The Blue Cross NC SIU is a dedicated team that often receives additional targeted support from our Legal Department, Healthcare Services Department, and the Data and Analytics team. This team also has additional support throughout the organization.  

The SIU approach is anchored around a data-driven philosophy focused on early detection of aberrant behavior and a retroactive review of unusual trends and patterns. This unit leverages a multi-tiered approach to detect, prevent, investigate, and correct potential FWA across the enterprise. The SIU proactively searches for organizational risks and potentially fraudulent activity. Once FWA is identified, the course of action may include outreach and communications with impacted parties, cooperation with state and federal law enforcement officials, and engagement in the Department of Insurance referral process.