Avoid-Fraud.com

The cost of health care keeps going up at several times the rate of inflation, and health insurance premiums are rising to meet these escalating costs. In response, smart business owners and individuals are shopping for quality insurance at an affordable price. Unfortunately, while searching for affordable options, some employers and individuals have purchased “coverage” from certain entities that are not authorized by state insurance departments to sell this coverage. Those seeking to make a profit by selling fraudulent health “insurance” claim that state insurance laws don’t apply. Such unauthorized entities – also sometimes referred to as bogus entities or scams – may collect premiums and not pay some or all of the legitimate medical claims filed by policy holders. That leaves medical providers stuck with unpaid bills, and policyholders facing unexpected financial hardship, even personal bankruptcy. Don’t be taken by fraudulent plans. Read all materials, ask hard questions, and do your homework. Look for the warning signs. Protect yourself and your health care dollars.

Here are some tips how you can protect yourself:

The coverage being offered has better benefits, but lower rates than can be found from licensed insurers. A union plan is being sold, but no other traditional union benefits are present. A union plan should not be available through an agent. Coverage is being offered with no limitations on usage, no age restrictions, and all pre-existing conditions accepted. Make sure your agent is selling a state-licensed product. Watch out if your agent says he or she doesn’t need a license because the coverage isn’t insurance or is exempt from regulation. Never pay by cash. Ask for a receipt far all payment. The receipt should include your policy number, date, and name of health plan. If you don’t receive plan documents within the indicated time frame, contact the company and demand proof of coverage. Read the plan documents when received.

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