Health Insurance Scams

Health insurance is something we all need, and looking at your options can be overwhelming.  Insurance plans are often complex or confusing and can have you stressed out over what to choose.  Dishonest companies and scammers know this and will sometimes use it to their advantage, conning people into either non-existent plans or ones that cover few actual medical expenses.  This could leave you and your family unprotected and on the hook for some major medical bills.

Here are five signs of a Health Insurance Scam, how to avoid being a victim, and where to report if you think you have spotted a scam.

1. Scammers say they are from the government and need money or your personal information.  Government agencies don’t call people asking for money or personal information.  No one from the government will ask to verify SSN, bank information, credit card number, or to pay in wire transfers, through gift cards, or crypto.
2. Scammers say you need to pay a fee for new Medicare card or you will lose your coverage.  You never need to pay for insurance cards, and Medicare will not call you to say you are losing coverage.  If you receive calls like this, they are scams.  If you have questions about Medicare, call them directly at 1-800-MEDICARE or visit them online at medicare.gov.
3. Scammers try to sell you a fake medical discount plan.  Medical discount plans charge a monthly fee for discounts of services and products, but they are not a substitute for health insurance.  There are some legit medical discount plans out there, but others just take your money and offer very little if anything in return..  Be sure to do your research and get all details of any discount plan before signing up.
4. Scammers want your sensitive personal information in exchange for a price quote.  If you go to HealthCare.gov, it lets you compare prices on health insurance plans, check eligibility, and sign up.  They will only ask for monthly income and age to give a quote.  Never give any sort of personal information to get a quote for health insurance.  As I learned recently, you are setting yourself up for robocalls, and in some cases it can lead to identity theft.
5. Scammers want you to pay for help with the Health Insurance Marketplace.  People who offer legit assistance are not allowed to charge you and won’t ask for personal or financial information.

So, what should you do before signing up for health insurance?  How do you avoid being a victim?

1. Always visit trusted sites.
2. Do your research before signing up for any kind of plan.
3. Check to be sure the plan is really health insurance and that the agency you are dealing with is licensed.
4. Don’t accept vague answers to your questions.
5. Insist on seeing a statement of benefits or a complete copy of the policy you are considering.
6. If the sales person tells you the plan is through a major insurer, contact that company directly.
7. Confirm all details if you are interested in a discount add on plan and avoid “up to” discounts.
8. Don’t sign up on the spot.
9. Check with your state to be sure any discount you are considering is legit.
10. Never give your financial information to someone who calls you unexpectedly.

If you or someone you love has been a victim of a health insurance scam, please report it. Even if you aren’t sure but you think it may have been a scam, report it.  Below are some agency contact information details:

ReportFraud.ftc.gov

Medicare.gov or 1-800-633-4227