Scam health insurance providers have mushroomed due to the increasing number of people who are looking for health insurance. Scam providers target seniors, new retirees, and small-business owners who are unable to negotiate better rates with legitimate insurance companies. Before you make any investment in any type of health insurance policy, be cautious. Continue reading to learn about three ways your insurance company could scam you.
- Failure to pay claims
Fraud health insurance agents often sign up large numbers of people quickly, offering lucrative deals. These illegal insurance companies disappear as though they never existed.
Be aware if your service provider delays or offers fake excuses for not making payments. These illegal plans could also make you liable for your employees’ medical bills.
2. You could be in serious trouble if the company you purchased your health insurance policy from is not licensed by the State Insurance Commissioner. The company could be fraudulent if it doesn’t have all the insurance regulations protections. Your service provider may be swindling you by selling unlicensed health plans.
Federal law prohibits insurance agents from selling any valid ERISA or union plans. If your agent tries to deceive you by selling an “ERISA”, or “union” plan to you, they should be reported to the state insurance department.
3. Extraordinary coverage available at lower rates
You should panic if you’re offered unusual coverage, regardless of your health status, and at a lower rate and with more benefits than other insurers. Don’t be fooled by the tempting offer. Otherwise, you could be taken for a ride. They are trying to get large amounts of money as soon as possible, so they sell as many policies as possible at attractive prices.