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Health Insurance Scammers Prey on Healthcare Reform Confusion

health insurance scam warning
Image: B Rosen under CC 3.0

Over the past several months, the American public has been wrestling with the advent of healthcare reform and what it will mean for them. For many, it will require them to purchase a health insurance plan.

Unfortunately, scammers in 24 states are taking advantage of this uncertainty. They are advertising medical discount plans as full-fledged health insurance, which they are not. Unlike standard insurance, these limited plans aren’t accepted by doctors and hospitals to cover most or all of a person’s medical bills.

The Federal Trade Commission has joined in the fight to crack down on these misleading marketing tactics. They hope to eliminate them before the mandate provision of the law goes into effect in 2014.

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