An article in the Wall Street Journal reported on health insurance scams that many people have become victim to over the past decade. Since 2000, over 200,000 businesses and individuals have been duped into buying fake policies from fraudulent organizations pretending to be insurance companies.
These companies collect premiums and don’t pay benefits.
Most recently, the fake insurers have started to target seniors — by selling bogus Medicare Advantage and prescription drug plans. They’re also trying to weasel out confidential information to steal identities.
The Journal also wrote about the misleading sale of medical discount cards. Discount cards are not the same as an insurance plan — they provide some discounts for medical services, but they do not offer the same kind of coverage as insurance. Be sure to know the difference!
Some “companies ” have been selling shoddy discount cards that have very limited participating care providers, or are fake altogether.
You should always feel secure with the process of buying insurance. If you ever feel uncomfortable, don’t hesitate to hang up, or ask questions to make sure you’re dealing with a legitimate agent or insurance company.
You can also ask an agent for their license number and verify it with an insurance company directly.
And if you are ever in the situation where you suspect you have coverage with a fraudulent company, be sure to file a report with your state’s insurance department.
(By the way… GoHealth is an absolutely secure service that always connects you with agents licensed with leading health insurance companies.)