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.