{"id":44092,"date":"2021-10-20T08:00:59","date_gmt":"2021-10-20T12:00:59","guid":{"rendered":"https:\/\/www.singlecare.com\/blog\/?p=44092"},"modified":"2021-10-19T16:50:14","modified_gmt":"2021-10-19T20:50:14","slug":"health-insurance-scams","status":"publish","type":"post","link":"https:\/\/www.singlecare.com\/blog\/health-insurance-scams\/","title":{"rendered":"4 health insurance scams to avoid"},"content":{"rendered":"

Over the<\/span> past two decades<\/span><\/a>, health insurance rates have risen at an astronomical pace. Premiums have doubled\u2014and tripled, in some cases\u2014while benefits have been slashed in half and out-of-pocket costs have exponentially increased.<\/span><\/p>\n

The result? A desperate American public either actively engaging in health insurance fraud purely to get the care they need or primed to fall for health insurance scams that promise better coverage for lower rates.\u00a0<\/span><\/p>\n

4 types of health insurance scams to avoid\u00a0<\/span><\/h2>\n

According to the<\/span> Federal Communications Commission<\/span><\/a> (FCC) and <\/span>Federal Trade Commission<\/span><\/a> (FTC), health insurance scams tend to spike around open enrollment periods: Nov. 1 through Dec. 15 for the Affordable Care Act, and Oct. 15 through Dec. 7 for Medicare. This may be because people are most vulnerable to these scams when they are searching for affordable coverage for themselves and their families. <\/span>Don\u2019t be a victim of these ploys! Watch out for these warning signs, and common scams.<\/span><\/p>\n

1. High medical discount plans<\/span><\/h3>\n

Medical discount plans often promise to save you money on items your insurance may not cover. You pay a monthly fee, and they offer slashed-price services. While there are some legitimate plans, if it seems too good to be true, it likely is. High-rate medical discount programs are often a red flag for fraud. Before you sign up for a medical plan, check the details and coverages carefully, make sure your doctor(s) participate, and get the terms in writing.\u00a0<\/span><\/p>\n

\u201cThese programs are either<\/span> fake, don’t cover the basic or essentials you need, or don’t have the promised discounts,\u201d explains Shawn Plummer, owner and CEO of <\/span>The Annuity Expert<\/span><\/a>, representing over 50 insurance companies.\u00a0\u00a0<\/span><\/p>\n

2. Unexpected fees<\/span><\/h3>\n

Anyone trying to charge you a fee to help you find the best insurance policy is also likely running a scam. <\/span>\u201c<\/span>People who<\/span> legitimately help you with navigating the Health Insurance Marketplace are not allowed to charge you a fee,\u201d Plummer says.<\/span><\/p>\n

The same goes for being told you\u2019ll have to pay for a new Medicare card, says Joshua Romo, an insurance broker for<\/span> Arizona Life and Health Solutions<\/span><\/a>. Government programs such as Medicare will never call or email you unexpectedly and say you\u2019re going to lose your coverage or need to pay a fee immediately. If someone mentions a fee that doesn\u2019t feel right, hang up and do some research. You can always call the government program directly to confirm any information. It\u2019s important to never give your personal details in situations like this.<\/span><\/p>\n

3. Suspicious claims<\/span><\/h3>\n

Government officials will not call your home. Neither will the IRS. If your insurance company needs to reach you, they will not ask you for personal details. Any caller identifying as a government representative or phishing for your information is likely running a scam. Health insurance phone scams almost always involve a caller posing as someone they aren\u2019t and trying to get your personal information.\u00a0\u00a0<\/span><\/p>\n

A similar scam is when a scammer sends a fraudulent email that claims to be from a government official or includes threats of losing coverage. You can always contact the government agency or insurance company directly to ask a question or address a concern.<\/span><\/p>\n

Another red flag? Any insurance company that claims their policies are licensed under the Employee Retirement Income Security Act (ERISA). \u201cERISA is<\/span> a federal organization, but insurance companies are licensed by state organizations,\u201d Plummer explains.<\/span><\/p>\n

4. High-pressure sales tactics<\/span><\/h3>\n

Finally, consumers should be wary of high-pressure sales tactics that push them to sign up immediately for low rates. \u201cThey may not deliver what they promised and it’ll<\/span> be hard for you to get out of it,\u201d says Plummer. A legitimate broker won\u2019t pressure you to act fast. Slow down and do your research before you make any commitments.<\/span><\/p>\n

RELATED: <\/b>Learn how to avoid Medicare fraud<\/b><\/a><\/p>\n

Who is behind these scams?<\/span><\/h2>\n

It would be great if there was a database to refer to when trying to figure out if you are being scammed. Unfortunately, no such list exists. This is because there is no one specific group behind these scams. They are operated by individuals and organizations alike. Some are as simple as a single perpetrator posing as someone they aren\u2019t to get your personal information, while others are as involved as fake insurance companies charging your card every month for premiums that ultimately never pay out.\u00a0<\/span><\/p>\n

Scammers can easily change their names or tactics when word begins to spread about what they are doing. As quickly as one scammer is taken down, four or five more might start scamming\u2014making it impossible to create a reference list.<\/span><\/p>\n

The only real way consumers can protect themselves is by paying attention to red flags and refusing to work with any company that doesn\u2019t already have an established reputation.<\/span><\/p>\n

Why are there so many health insurance scams?<\/span><\/h2>\n

The sad truth is these scams exist because people are desperate for affordable coverage. <\/span>\u201c<\/span>Most people know health insurance is important to cover unexpected large<\/span> healthcare costs, but it can be more expensive than people realize,\u201d Plummer explains. \u201cThis is<\/span> why they can be tempted to take offers that seem too good to be true to cut<\/span> down on medical expenses.\u201d<\/span><\/p>\n

Scams like this wouldn\u2019t exist without people who are vulnerable to being scammed. But when people are struggling to find affordable coverage that will truly meet their needs, there are plenty of scam victims to choose from.<\/span><\/p>\n

All of this leaves a long list of people vulnerable to these types of scams:<\/span><\/p>\n