Health Insurance Scams

Finding the right health insurance plan for you and your family is more time-consuming, complex, and overwhelming than you might think. Combing through extensive paperwork is tedious, and understanding the legal jargon can leave you even more confused. 

Given the hustle of getting a genuine health insurance cover, many Americans seek guidance in understanding their insurance options and simplifying the process. While this is a good move, it makes you more susceptible to health insurance scams. For the most part, you’ll unknowingly end up falling for health insurance scams that promise better coverage for surprisingly low health insurance coverage rates. 

Health insurance scammers target people who don’t understand health insurance well. They particularly leverage the grey areas in healthcare to trick people. If these scammers aren’t convincing you to provide your personal information, they are splashing all over the excellent goods and services that aren’t offered. In cases where the services are provided, the health plans cover few medical expenses leaving you with hefty bills.

Health Insurance Scams You Need To Know

Fraudsters don’t rest until they get what they want from unsuspecting clients. If they fail, scammers devise new and better methods of separating hard-working consumers from their money. 

Fortunately, we have highlighted some of their popular techniques and unearthed the more advanced tricks they use to trap unsuspecting consumers. 

1. You need to pay for a new Medicare card

When the Corona pandemic was at its peak, and everyone else was grappling with its effects, scammers took advantage to solicit funds and sources for personal information. In what has been termed as the Medicare Card Scams, these fraudsters falsely convinced users that Medicare is issuing new Medicare cards. 

They ask users to acquire a new plastic card or a black and white Covid-19 Medical card. The swindlers will tell you to pay for the new card or provide personal identifying information or else lose your Medicare coverage. 

The truth is: Medicare isn’t issuing any new cards to beneficiaries. Additionally, Medicare doesn’t contact participants through calls or texts. You’ll receive official communication through email. And neither does Medicare call you to tell you about Medicare without seeking their help first.

2. Charges when trying to get a new insurance

As earlier mentioned, the Health Insurance Marketplace is one of the most challenging terrains to navigate. And because scammers know pretty well the hurdles that exist, they will use every technique to convince you that they will help you. But instead, defraud you of your money and vital personal information. 

Typically, fraudsters will cold-call you with a promise to help you go through the rugged path of the Health Insurance process. But this unsolicited help isn’t free. They’ll ask for a small fee for their services or ask you to pay the penalty for not seeking their advice earlier. 

The truth is: while some legitimate people offer help with Health Insurance Marketplace known as navigators or assisters, the law doesn’t allow them to charge any fee for assisting you in finding a new Insurer. 

3. They claim they are from the government

Not even the federal state representatives will call you to verify your social security number or bank information. In case of an issue that needs clarification, agencies like IRS or Medicare will send you a handwritten letter via snail mail. They will request you to contact the agency without demanding or asking for any money. 

If you receive a call from someone claiming they are from the government, insist on getting the supposed agent’s name, department, and phone number. And while it would be essential to call this scammer back, do remember no agency will contact you via phone. Additionally, watch out for any United Freedom Benefits Department Letter. Most of them are scams you should never entertain. 

4. Providing sensitive information in exchange for a price quote

Whenever you need to check and compare prices of different health insurance plans, the Affordable Care Act’s, an official government site, will come in handy. It also allows you to check your eligibility for healthcare subsidies.

Unlike scammers who will ask for money and vital personal information, (ACA’s) will only request for your monthly income and age to provide you with the price quote. So never trade your personal financial information like social security and bank account for a health insurance quote readily available on HealthCare.gov and free of charge.

How do you avoid healthcare scams?

We all could reduce the number of people falling for these health advisor scams by:

• Being mean with personal information. Protect your privacy by keeping your data away from social media. Scammers use platforms such as Facebook and Instagram to source your information.
• Be informed on the current health care insurance terms. It is essential to know these terms to avoid being conned using some emerging trends. 
• Be keen with any health insurance company or agent that sounds too salesy
• Avoid “up to” discounts. Sometimes scammers claim they can offer discounts of up to 60%. However, if you look at enrollment fees and premiums, the total cost may be too high, meaning you won’t save much from the discount.
• Never sign up straight away. Don’t be pressured to sign up immediately, even if a deal is special. Legitimate plans will send you written information about the plan and allow you to go through the details and understand them before enrolling. Anyone asking you to sign up on the spot is a scammer. 
• Research on the company. If a company offers you health coverage, search for the company’s name online. Check out reviews and if you notice red flags such as complaints or frauds associated with it, then stay away!
• Confirm and compare plans through trusted sources. Compare health insurance plans only onHealthCare.gov and state marketplaces to ensure you’re getting ACA-compliant coverage before enrolling.

Spotted a scam?

The  Federal Trade Commission receives complaints of scam activities. You can report the scammers at 1-800-MEDICARE and ReportFraud.ftc.gov. Besides, the ideal way to fight scams is to tell your friends and family about the scam so that they can protect themselves.

Conclusion

Health insurance covers your medical costs preventing you from unexpectedly high costs. But the health insurance market has become rife, with health care insurance scams that take advantage of unsuspecting victims. Stay watchful for the healthcare scams discussed in this post to avoid falling victim to identity theft and losing your money.