Healthcare Industry News > Health Insurance Scams on the Rise

Health Insurance Scams on the Rise

With health care costs rising, scams promising savings and other benefits are also increasing and leaving behind more than 200,000 victims and millions of dollars in unpaid medical bills.  Most of these scams work in the same way:  victims pay premiums but never receive a dime towards any of their medical claims.

Small businesses are one of the targets for these scams.  In October, National Trade Business Alliance of America was ordered to stop selling insurance policies in Arizona after an investigation found they were selling bogus policies at a ridiculously low cost.  They disputed the charges but they have been investigated in three other states for similar reasons.

Medical discount cards promising helpful discounts on a wide range of medical and prescription services can be legitimate but too often either the discounts are not honored or the number of in-network providers is so small the discounts are useless.  Additionally, telemarketers have begun selling fake Medicare plans over the phone to senior citizens.  Others use their sales pitch for identity theft.

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