3 Ways Your Health Insurance Company Is Scamming You

The increase in the number of consumers using health insurance has led to an increase in the number of fraudulent health insurance providers. These providers often target new retirees and seniors, as well as small business owners who are unable to negotiate better rates with reputable insurance companies. Be careful before investing in health insurance. Read on to learn three ways your health insurance company could be defrauding you.

1. Debts are not paid

Usually, fraudulent health insurance brokers quickly lure many people with tempting offers. These insurance companies continue to pay premiums and small medical claims, but when large claims arise or are intercepted by regulators, these illegal companies disappear as if they never existed.

So be careful if you receive payments late or if your service provider gives false reasons for not paying. If you participate in this illegal scheme, you may also be required to pay your employees' medical bills.

2. Unlicensed health insurance plans

If the company you purchase health insurance from is not licensed by the state insurance commissioner, you may be in trouble. If your service provider does not have full insurance coverage, it is likely that the company is committing fraud. In this case, your provider is defrauding you by selling health insurance without authorization.

Under federal law, insurance agents are not allowed to sell existing ERISA or union plans. If your insurance agent tries to defraud you by selling you an “ERISA” or “Union” plan, report it to your state's insurance department.

3. Unusual coating at a lower price.

If you're being offered excellent coverage regardless of your health status, as well as lower rates and much higher benefits than other insurance companies, it's time to panic. Do not be fooled by tempting offers, otherwise you risk being deceived. “Scammers” try to make large amounts of money as quickly as possible and then try to sell as many policies as possible at attractive prices.

Summary:

The increase in the number of consumers using health insurance has led to an increase in the number of fraudulent health insurance providers. These providers often target new retirees and seniors, as well as small business owners who are unable to negotiate better rates with reputable insurance companies.