Beware Of These 3 Health Insurance Scams

by | Feb 3, 2021 | Health Insurance, Small Business Insurance

  1. Home
  2.  » 
  3. Health Insurance
  4.  » Beware Of These 3 Health Insurance Scams

With growing numbers of Americans losing their health insurance, the industry is dealing with a glut of health insurance scams. These scammers often target new retirees, elderly individuals, and small-business owners, who can’t negotiate better rates with main line insurers. Be very cautious before you purchase any health insurance policy. Below are 3 ways in which these scam health insurance companies can take you.

Non-licensed Health Plans

Buying a health care policy from an un-licensed company means all of the protections of insurance regulation do not apply. In this case your service provider is scamming you by selling non-licensed health plans – the company may be phony!

If an insurance agent tries to sell you an Employee Retirement Income Security Act (ERISA) plan or ‘union’ plan, report them to your state department of insurance regulation. Insurance agents are not allowed to sell any legitimate ERISA or union plan under federal law.

Unusual Coverage Offered at Lower Rates

You have a coronary problem and you’re overweight. An agent offering you coverage at a lower rate with more benefits compared to other insurers, hit the panic button! Don’t get fooled, this is a scam! The scammers aim to collect huge amounts of money very early so, they try to sell large number of policies at low prices.

Failure To Pay Claims

Usually fraud health insurance agents sign up a huge number of people very quickly by offering them lucrative deals. These insurance providers keep paying small premium amounts and medical claims. But, if there is a substantial claim amount or regulators catch them, these illegal companies vanish as if they never existed.

Beware, if you are getting delayed payment notices from your health service providers and the insurer is offering excuses for the failure to make payments – you’ve been scammed. If you have signed up for these plans, you will be liable for the medical bills. If you’re a small business owner sponsoring and employee plan, you’ll be liable for of your employees medical bills as well.

  1. Home
  2.  » 
  3. Health Insurance
  4.  » Beware Of These 3 Health Insurance Scams

You May Also Like…

Health Coverage Mitigation

Health Coverage Mitigation

What is Health Coverage Mitigation? Mitigation is defined as the action of reducing the severity, seriousness, or...

Supplemental Health Insurance

Supplemental Health Insurance

Supplemental (also known as secondary) health insurance is used to complement your health insurance and fill any holes...

0 Comments

%d bloggers like this:

This website provides information for the reader to choose to request more information about life insurance, insurance for small business, health insurance, Medicare, and supplemental insurance including how to request a quote. By requesting a quote, you agree to our Privacy Policy and our Terms & Conditions. If you submit your personal information, you are making a consumer inquiry for life insurance, insurance for small business, health insurance, Medicare, and supplemental insurance through me as a licensed insurance producer as more fully described below. By proceeding, you give your consent and expectation to be contacted by Richard E Smith and/or associates. Any health or personal information shared is protected by applicable privacy laws and regulations, including HIPAA.

Invitations on richardesmith.com for application for insurance are made through Richard E Smith an independent agent/producer. Richard E Smith is a licensed insurance producer in Florida (License# W568154).

Commercial use by others is prohibited by law. No portion of richardesmith.com may be copied, published, faxed, mailed or distributed in any manner for any purpose without prior written authorization from the owner.

Insurance policies described, quoted, shown, and illustrated throughout this website are not an offer for the sale of any particular insurance policy or product, only an invitation for application for insurance coverage and may not be relied upon. There are many variables in different insurance coverages and companies, including various insurance company standards and offerings, underwriting requirements and may not be available in all states.

We do not sell your personal information to anyone! You will not receive unsolicited, intrusive calls or emails from other agents and companies across the country. If you do provide your telephone number, Richard E Smith and/or his associates may call or text message/SMS you at the phone number(s) above, including your wireless number if provided. Normal charges may apply. This call may be generated using automated technology and if we're unable to reach you when we call, we may leave you a pre-recorded message, so you can call us back. Your consent to us calling is not required to get a quote or make a purchase and may be revoked at any time. You may simply call us at 239-596-8449. | Privacy Policy | Terms of Use