As more consumers use health insurance, fraudulent health insurance providers are proliferating. These providers often target new retirees, seniors, and small business owners who cannot negotiate better rates with legitimate insurers. Be very careful before investing in health policies.
Read on to get ideas about 3 ways your health insurance company can trick you.
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1. Non-payment of claims
Typically, fraudulent health insurance agents quickly sign up huge numbers of people and give them great deals. These insurers continue to pay small premiums and medical claims, but when the claims are significant or caught by regulators, they disappear as if they never existed.
So be wary if you get late fees or if your service provider gives you false excuses for not paying. If you subscribe to these illegal schemes, you may also be held liable for your employee's medical bills.
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2. Unlicensed health plan
Problems can arise if the company from which you purchase your health insurance is not licensed by the State Insurance Commissioner. If your service provider does not have all the protections of insurance laws, the company may be a fraud. In this case, your provider is deceiving you by selling you an unlicensed health plan.
Because insurance agents are regulated by federal law, they cannot sell legitimate ERISA or combination plans. So, if your insurance agent is attempting fraud by selling you ERISA or combination plans, report it to the National Insurance Department.
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3. Unusual guarantees at affordable prices.
If you're getting unusual coverage regardless of your medical condition and offer lower rates and far more benefits than other insurers, it's time to hit the panic button too. Don't be fooled by the good offers. Otherwise, you may be deceived.
Scammers want to recoup huge sums as quickly as possible, so they try to sell as many policies as possible at attractive prices.
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