Scam health insurance companies have proliferated in response to the increasing number of individuals purchasing coverage. The newly retired, the elderly, and the owners of small businesses who lack the bargaining power to secure cheaper prices from legal insurers are common targets of these providers. Carefully consider your options before committing to a certain health insurance plan. To gain a sense of the ways in which your health insurance provider can take advantage of you, read on.
Nonpayment of claims
In order to quickly make a lot of money, fraudulent health insurance agents sign up a lot of customers. These insurance businesses continue to pay out on minor claims and premiums, but when regulators become involved or the claim amount is large, they disappear.
Be wary if your service provider is delaying payments or giving you bogus reasons why they can’t pay you on time. You may be responsible for your workers’ medical costs if you have enrolled in one of these unauthorised programmes.
Contraband medical insurance
Be wary of purchasing a health insurance coverage from a company that lacks the necessary licencing from your state’s insurance commissioner. Your service provider may not be legitimate if they don’t offer you the full safeguards afforded by insurance law. Your provider is engaging in fraud by offering you unapproved medical coverage.
Insurance agents are prohibited by federal law from selling ERISA or union plans. You should contact the state insurance department if your insurance agent tries to sell you a fake “ERISA” or “union” plan.
Affordable but unusual insurance policies
You should also be alarmed if you are provided an unusual coverage regardless of your health status, especially if it comes with a lower premium and more features than those supplied by other insurers. Do not fall for the tempting offer; else, you may be taken advantage of. The “scamsters” are after quick and large sums of money, therefore they provide discounts to sell as many policies as they can.