Health Insurance Scammers Exploiting Health Reform
Health Insurance Scams Are Back with Health Reform Confusion
Well, we might have hoped that, if health reform did one good thing, it would reduce the number of health insurace scams that keep popping up. And it may very well help to do that, but right now, there seem to be a spike of them. Scammers see an opportunity to exploit confusion over the health reform bill, and they are out preying on the vulnerable again.
Who are vulnerable. Well, it appears that lots of people are struggling with high medical insurance premiums and lower incomes right now. The opportunity to save a few hundred dollars a month is certainly attractive. Just keep in mind, that if something sounds way too good to be true, it probably is!
Here are some common health insurance scam markers for 2010:
- If anybody is trying to get in your front door selling OBAMACARE policies, just keep your door shut.There is not such thing, and really that term is a cynical pejorative. President Obama’s health reform bill has not started creating special health insurance policies now, and anyway, they certainly would not have that name. We already have reports of agents (or possibly impostors) using this as a tactic to meet with clients for both private health insurance and Medicare health insurance plans.
- Are the premiums too good to be true? A small business owner was tempted by saving $500 a month on his family health insurance premiums by a very smooth sales person. He reduced his premiums from about $700 a month to $297. In the end, when is son needed treatment, he found he had purchased a medical discount plan, and did not have any major medical coverage at all!
- A salesperson claims to be a federal employee out signing people up. Honestly, the federal government does not go door to door, or senior community to senior community, to enroll people in Medicare Advantage or Medicare supplements. These are sold by private insurers or local insurance agents. And they certainly do not go out to enroll people in private major medical policies for people under Medicare age.
You may think these claims are crazy, but this is already being reported. It is, of course, simple for an educated consumer to protect himself or herself against fake health insurance scams.
- Every state has an insurance department. You can find your state insurance department here, and this is where you can research any insurance company or agent! You will also find a toll free phone number where you can call to ask questions about insurance topics.
- Do Not Succumb to Pressure. There are plenty of legitimate insurance agents and companies out there. If a salesman uses high pressure tactics, that should be a red flag that you need to just say no so you can have time to check the plan out.
- Do not hand out your social security card, bank account, etc. over the phoneunless you are very certain you know who you are dealing with. It is true that legitimate insurance is sold on the phone, or even through fax machines or the Internet these days. But if you are called by somebody you have never requested information from, it is a very good idea to confirm who you are speaking with before you hand out personal information.
These scammers hurt everybody. They hurt consumers, especially vulnerable people who are struggling with high insurance premiums. They also hurt legitimate insurers because they make it harder for them to do business.
If you have any more information about the latest scams, lets help stop this. You can register for free here, or you can join the discussion – Health Reform Insurance Scams.
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