The growing number of consumers subscribing to health insurance plans has led to the proliferation of fraudulent health insurance providers. These providers often target new retirees, seniors, and small business owners, who cannot negotiate better rates with legitimate insurers. Be very careful before investing in a health policy. Read on to get an idea of 3 ways your health insurance company can scam you.
1. Non-payment of claims
Usually, scam health insurance agents quickly sign up large numbers of people with lucrative offers. These insurers continue to pay small premiums and medical claims, but if there is a substantial amount of claim or the regulators catch them, these illegal companies disappear as if they never existed.
So beware if you receive late payments or if your service provider offers false excuses for not making payments. If you have subscribed to these illegal plans, you may also be liable for your employees' medical bills.
2. Unlicensed Health Plans
If the company you purchased your health insurance policy from is not licensed by the state insurance commissioner, you may be in trouble. If all the protections of insurance regulations do not apply to your service provider, then the company may be bogus. In this case, your service provider is scamming you by selling unlicensed health plans.
Insurance agents are not allowed to sell a legitimate ERISA or union plan, as federal law governs them. So if your insurance agent tries to trick you into selling an "ERISA" or "union" plan, report it to your state insurance department.
3. Unusual coverage offered at lower rates
If you are offered unusual coverage regardless of your health condition and that too at a lower rate and many more benefits compared to other insurers, it is time for you too to press the panic button. Don't be fooled by the lucrative offer or else you may be taken for a ride. The "scammers" aim to collect huge sums as soon as possible, so they try to sell as many policies as possible at attractive prices.
