The ever rising number of consumers signing up for health insurance plans has resulted in a rise in the number of scam medical insurance providers. These medical insurance providers often target people who have recently retired and seniors who are unable to arrange better rates with legitimate health insurers. Read on to discover 3 ways in which your health insurance company may try to scam you.
1. Failure to settle claims
Usually fraudrulent health insurance agents try to sign up a huge number of individuals quickly by making them very lucrative offers. These insurers themselves pay small premium amounts and settle small medical claims but, if there is a substantial claim has to be met or if the regulators catch them, these companies will simply disappear as if they had never existed.
Be wary therefore if you are getting delayed payments or if your service provider is offering lame excuses for their failure to pay out. If you have one of these illicit plans you may also find that you are liable for medical bills for your employees as well if you have taken a policy as an employer for your business.
2. Selling medical plans which are not licensed
If the insurance company does not hold a license from the State Insurance Commissioner then you could find yourself in difficulty. In these circumstances your insurer is almost certainly scamming you by offering non-licensed health plans.
You should also note that agents are not allowed to provide union or ERISA plans, both of which are governed by federal law. If therefore your agent tries to sell you an union or ERISA plan you ought to report this to your state insurance department.
3. Offering unusual coverage at low rates
If you are offered a high level of cover regardless of your health condition and at a lower rate than you would expect from other insurers then you need to be very careful. Do not be fooled by an apparently too attractive offer because you are more than likely to find yourself being taken for a ride. The scammers aim to collect large amounts of money as early as they can and so they will attempt to sell as many policies as they can as fast as they can before they disappear into the night.
Of course these are just a few of the many tricks that the scammers get up to but in most cases the presence of one or more of these things should make you stop and look closely at what you are purchasing.
1. Failure to settle claims
Usually fraudrulent health insurance agents try to sign up a huge number of individuals quickly by making them very lucrative offers. These insurers themselves pay small premium amounts and settle small medical claims but, if there is a substantial claim has to be met or if the regulators catch them, these companies will simply disappear as if they had never existed.
Be wary therefore if you are getting delayed payments or if your service provider is offering lame excuses for their failure to pay out. If you have one of these illicit plans you may also find that you are liable for medical bills for your employees as well if you have taken a policy as an employer for your business.
2. Selling medical plans which are not licensed
If the insurance company does not hold a license from the State Insurance Commissioner then you could find yourself in difficulty. In these circumstances your insurer is almost certainly scamming you by offering non-licensed health plans.
You should also note that agents are not allowed to provide union or ERISA plans, both of which are governed by federal law. If therefore your agent tries to sell you an union or ERISA plan you ought to report this to your state insurance department.
3. Offering unusual coverage at low rates
If you are offered a high level of cover regardless of your health condition and at a lower rate than you would expect from other insurers then you need to be very careful. Do not be fooled by an apparently too attractive offer because you are more than likely to find yourself being taken for a ride. The scammers aim to collect large amounts of money as early as they can and so they will attempt to sell as many policies as they can as fast as they can before they disappear into the night.
Of course these are just a few of the many tricks that the scammers get up to but in most cases the presence of one or more of these things should make you stop and look closely at what you are purchasing.
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Arranging medical insurance from legitimate insurance companies does not have to cost you a fortune so get some free, no obligation affordable health insurance quotes today from one of this county's leading insurance providers.
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