Your Health Insurance Company Tricks You in Three Ways Your Health Insurance Company Tricks You in Three Ways. Scam health insurance companies have increased due to the growing number of consumers purchasing their plans. These companies often target retired people and the elderly, as well as small-business owners, who can’t get better rates from legitimate insurers. People should be very careful when considering any health insurance policies. Below are three ways in which these scam companies can take advantage of their customers.

Claim denials due to lack of payment

Criminals posing as health insurance agents provide large numbers of people with lucrative offers. This helps these fake agents quickly sign up a large number of clients. Offering small monthly premiums and paying out small claims helps these criminals maintain the facade. However, if they’re caught by regulators or make a significant claim, these fake agents simply disappear as if they never existed.

Employees who sign up for illegal health care plans are liable for their medical bills. Additionally, delayed payments or excuses from a service provider indicating failure to make payments should be looked at carefully.

Other non-licensed health plans come with their own flaws

Any company you purchase a health care policy from must be licensed by your state’s insurance commissioner. If they aren’t licensed, then they could be fraudulent and scamming customers.

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State insurance departments consider agents to be regulated by federal law. Anyone trying to sell you an ERISA or union plan is considered to have broken the law. If an insurance agent attempts to sell you one of these plans, report them to the appropriate department.

Lower rates are offered for unusual coverage through this offer

Scammers try to sell as many policies as possible at attractive rates. They aim to collect the premiums early and often. Consequently, they will offer an unusual insurance coverage despite the insured’s health condition. If you are offered something like this, you should hit the panic button. Don’t fall into their trap; otherwise, you could be taken for a ride.

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