Health Insurance Scams | 10 Signs You’re the Target

Health Insurance Scams | 10 Signs You’re the Target

by Angela Bass, March 11, 2016

Our Asurea Scam Report is constantly on the lookout for the steam of a brewing scam. One of the most trusted sources for the latest news on insurance fraud, the Coalition Against Insurance Fraud, compiled a list of 10 warning signs that you could be the target of health insurance scams.

Check out the warning signs for yourself:

  1. You receive a persistent barrage of phone and email messages or see advertisements offering incredibly low-priced deals.
  1. You’re pushed to “sign up now” because the deal expires soon. The sales rep may even demand your personal financial details before a (fake) policy can be issued.
  1. The con artist claims to be working for a government agency like “Obamacare.” Big hint: The government never refers to the Affordable Care Act as “Obamacare.”
  1. The terms of the insurance are “too good to be true.” This is always a big giveaway. Besides, dirt cheap insurance probably can’t give you the coverage you need or want — if anything at all.
  1. The sales rep is secretive or evasive about the details of the policy, perhaps dodging your questions and claiming the information you need is in a pamphlet. They may even refuse to show you an actual policy.
  1. You’re told you must become a member of a “union” or “organization” to get the coverage you need. These groups probably don’t exist and most likely don’t even relate to your interests.
  1. They use official-looking or well-designed websites to give off the appearance of respectability and honesty. You may be asked to sign up online but the policy details will be sketchy.
  1. Your insurance card or policy never arrives. If it’s genuine, you should see such documents within 10 business days.
  1. The “insurer” fails to pay your medical bills promptly. When you inquire or complain, the company blames delays on accounting errors.
  1. The rep says that the policy is exempt from the need for state licensing because it falls under the provisions of a special federal law. This is not true.

Perfect storm

Health insurance scams like these are alive and well in most states, according to the Coalition Against Insurance Fraud. These scams “exploit a perfect storm of vulnerability.” This perfect storm is made up of “millions of Americans without health insurance, mounting job layoffs and rising health premiums.”

Would you like to learn more about real insurance plans? Call our Asurea office today. We have agents all over the country, working under the reputable Asurea brand to secure your future — the Simple Solution way.

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This information is provided for general consumer educational purposes only and is not intended to provide legal, tax or investment advice.


Angela Bass

Angela Bass

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Angela joined Asurea as the Content Marketing Writer in September 2015. She is also a freelance multimedia journalist, having written and produced stories for Land & People Magazine, The Baltimore Sun, California Health Report, NPR's Latino USA, PRI's The World and KALW's Crosscurrents, among others. In 2014, she founded Storybrook Media, which provides video production services to nonprofits and small businesses. She holds a Master’s in Journalism from UC Berkeley and a BA in Creative Writing from San Francisco State.
Angela Bass