Posts Tagged - ‘scams’

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Tips: Beware of Health Insurance Reform Scams

Monday, April 26th, 2010

Image: ToastyKen under CC 3.0

Many people are using the healthcare reform law to sell products and services. Unfortunately, some are using scare tactics to scam consumers out of their hard-earned money.

Here are some tips to avoid being ripped off:

  • If anyone calls you and claims that they are a government employee collecting payment for an Obamacare health insurance plan, don’t give them any information. The federal government will not be collecting premiums directly.
  • There is no such thing as coverage against “death panels”. However, telemarketers are attempting to sell that non-existent coverage.
  • Make sure that you are speaking with a licensed health insurance agent before giving out any bank account information, either over the phone or in person.
  • If rates seem too good to be true, they probably are. $30 a month plans are extremely rare.
  • Do not buy coverage from an anonymous fax. Most of them list no company information.

States are increasingly investigating health insurance fraud. Be careful out there!

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Beware of Health Insurance Scams!

Wednesday, April 7th, 2010

(Image: jepoirrier under CC 3.0)

The passage of healthcare reform has resulted in a lot of confusion. Unfortunately, that means that many consumers have the potential to fall prey to scammers.

Right now, people are going around door-to-door and claiming that there is a national open enrollment period for a health insurance plan. Many of the health plans they’re selling are fake: they won’t cover many of the uninsured with pre-existing conditions. Kathleen Sebelius has vowed that the Health and Human Services department will go after fraudulent sellers of health insurance. When the bulk of the reforms go into effect in 2014, door-to-door salespeople will probably not be used.

Also be on the lookout for TV ads that use news coverage of President Obama to imply his endorsement of similar “open enrollment” programs; I just saw one yesterday. There is no such time frame for individual or guaranteed issue health insurance! White House speeches and press conferences are in the public domain, so they are legally allowed to use the misleading footage. You may remember similar commercials regarding the mortgage crisis.

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