3 Ways Your Health Insurance Company Is Lying To You
More consumers started buying health insurance plans, which led to the proliferation of scam health insurance providers. These providers usually target new retirees, seniors, and small business owners who are unable to negotiate better rates with legitimate insurers. Be careful before investing in any health policy. Read on for 3 ways your health insurance company can scam you.
1. Unpaid Claims
Often, fraudulent health insurance agents sign up large numbers of people quickly by offering lucrative offers. These insurance companies still pay small premiums and medical claims, but if the claims are large or caught by regulators, these illegal companies disappear without a trace.
So be careful if you receive a late payment or if your service provider provides false reasons for default. You may also be liable for your employees' medical expenses if you sign up for these illegal plans.
2. Unlicensed health plans
If you buy health insurance from a company that is not licensed by the state insurance commissioner, you could get in trouble. If all regulatory insurance coverage does not apply to your service provider, the company may be bogus. In this case, your provider is defrauding you by selling you a health plan without a license.
Under federal law, insurance agents are prohibited from selling legal ERISA or union plans. So if your insurance agent tries to scam you into selling you an "ERISA" or "union" plan, report it to your state's department of insurance.
3. Offer unusual coverage at a lower rate
If you're getting unusual coverage regardless of your health status, with lower rates and better benefits than other insurers, it's time to hit the panic button, too. Don't be fooled by tempting offers, or you could be scammed. The "fraudsters" aim to raise a large amount of money early, so they try to sell the maximum amount of policies at an attractive price.