Buyer Beware: Be On The Lookout For Health Insurance Scams
As if health care fraud wasn’t already a problem, this week the Department of Health and Human Services sent letters to State Insurance Commissioners and Attorney Generals asking them to be on the lookout for – and prosecute – con artists attempting to cash in on PPACA. Specifically, some swindlers have taken to setting up 1-800 numbers and going door-to-door trying to sell fraudulent insurance policies that they claim are approved by PPACA. The fraudsters claim that consumers can obtain coverage in a non-existent “limited enrollment” period made possible by the new legislation.
While PPACA will gradually introduce a slew of new health insurance options into the market, consumers should carefully review who they are buying “insurance” from, and what the policies cover. For example, many companies falsely advertise health care savings cards – where consumers receive discounts from medical services offered by participating providers – as “health insurance.” Consumers should take note that savings programs are not the same as insurance, and usage is generally limited to a small pool of services and providers.
