The invention is a method for reducing fraud in a healthcare program by
registering a service provider with a private healthcare provider and
issuing a service provider identification codes, registering at least one
service of the service provider with the private healthcare provider and
identifying a claim code for each registered service; issuing a smart card
to an individual related to a benefits program of the private healthcare
provider wherein the individual has an identification code and the smart
card has a feature to identify the individual; using the smart card to
determine if the individual is the authorized card bearer and is eligible
for the healthcare program; using the smart card to determine if a service
provider is preauthorized to provide a registered product under the
private healthcare provider program; and using the smart card to
facilitate a transmission between the service provider and the private
healthcare provider.
