Not to mention that it is fraud.
Not really an accurate description. This implies that they are gathering this information in some quasi legal manner, as if they are trying to hide the fact they are doing it.
When one applies for med ins, one has to sign an authorization giving them carte blanch to get information from all medical providers and previous insurance companies. Should come as no surprise that is exactly what they do.
As much as I despise insurance companies, which is a great deal, the reality is that much of what they do is the result of governmental meddling.
My wife and I are well past child bearing age. Yet the government mandates that everyone's policy include maternity coverage. Back in the late 70s we bought that a la carte as a separate rider. I well recall that when insurers were required to cover it on all policies, delivery room fees quadrupled the next year.
My brother in law paid $400 for one kid, and two years later $1600 for the next. Guess what happened in between?