Protect yourself – Health Insurance Scams in the News

For every good program, there is a better scam. In the time since President Barack Obama passed the Patient Protection and Affordable Care Act, state insurance departments and law enforcement have been busy investigating several reports of criminal fraudulent activity, trying to capitalize on the reform act.

The Coalition against Insurance Fraud spokesman, Jim Quiggle, says he is not surprised by the sudden influx of health insurance scams. “Crooks are exploiting the mass confusion over what the health reform means to the average consumer. With each new aspect of reform, another opportunity for fraudulent marketing opens up.”

One of the most common scams the government is seeing are fraud artists going door-to-door and blast faxing fake insurance policies and telling unsuspecting customers that they’re selling “Obama Care.” To create a sense of urgency, the scammers are invoking the legislation’s individual mandate provision, telling potential victims that the new law requires them to buy the insurance they are selling and do it before a supposed enrollment period closes.

As more of the reform act is put into action, the scams may become more frequent, more creative, and involve more citizens. However; a consumer can take some basic common-sense strategies to ward off any potential scammers:

• Trust your instincts- Like the old saying goes, “If it seems too good to be true, it probably is.”
• Suspicious Signs- Beware of the words “ObamaCare.” This is not an official name for the health care reform act it is simply a tag name that was created in health care news articles and reports.
• Make a call and compare- Verify the legitimacy of the insurer you are speaking with by calling your state insurance department. The state insurance department can also provide any complaints they have received on the insurer.
• Slow down- Don’t make hasty decisions or fall for the “limited time only offer” claim.
•  The Bottom Line – Read the fine print. This can not be emphasized enough; always read the fine print of a health insurance contract.

Dealing with scam artist happens in many realms of going about your daily life. The experts are warning that the scams will become more aggressive and creative, so “Buyer Beware!”