3 Possible Ways Your Health Insurance Company May Be Defrauding You
Author: Donald Saunders
Category: Health
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The ever growing number of people taking out health insurance policies has resulted in an increase in the number of scam health insurance providers. These medical insurance providers usually target people who have recently retired and the elderly individuals who can't negotiate good rates with legitimate insurers. Read on to discover 3 ways in which your health insurer might try to scam you.
1. Failure to meet claims
Usually scam health insurance agents will try to sign up a huge number of individuals quickly by offering them lucrative deals. These insurance providers are themselves paying small premium amounts and meet small medical claims but, if there is a sizeable claim arises or if the regulators catch up with them, these illegal companies will simply vanish as if they had never existed.
So, just beware if you are getting delayed payments or your service provider is offering poor excuses for their failure to pay out. If you have signed up for these illicit plans you could also be liable for medical bills for your employees as well if you have arranged a policy as an employer for your business.
2. Offering non-licensed health plans
If your insurer has not been licensed by State Insurance Commissioner then you could be in trouble. In these circumstances your insurer is almost certainly scamming you by offering non-licensed medical plans.
You also need to know that agents are not allowed to provide ERISA or union plans, both of which are governed by federal law. So, if your insurance agent tries to dupe you by offering you an ERISA or union plan you need to report this to your state insurance department.
3. Selling unusual coverage at low rates
If you are offered unusual coverage irrespective of your health condition and at lower rates than you would expect from other insurance agents then you should be very cautious. Do not get taken in by a seemingly very attractive offer as you are more than likely to be taken for a ride. The scammer's aim is to collect large amounts of money as early as possible and so they attempt to sell as many policies as they can as quickly as possible before they disappear into the night.
Naturally these are simply some of the many tricks that the scammers use but in most cases the presence of one or more of these things ought to make you stop and take a close look at just what you are buying.
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Keywords: medical insurance, health insurance, medical insurance plan, health insurance policy, health insurance quote
View Count: 378
Date Submitted: 3/30/2009
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