Scam Alerts
Ten warning signs
Invasive sales pitches. You’re harassed by aggressive telemarketers, faxes or emails promising unusually good insurance deals. The faxes may have no company name, address or contact name—only a tollfree number.
- Hint: Crudely printed signs stapled to telephone poles are another warning sign. Even licensed insurance agents are hired to sell bogus plans, so be careful.
Pushy pitchman. The sales rep pushes you to sign up fast. This “special deal” is available only if you buy today, the rep might lie.
- Hint: The rep also may push to obtain your bank account and credit card information before you sign up or receive plan details.
Health-care reform. In the newest scam, con artists sell fake health insurance that they lie is “required” by health-care reform. The pitchmen may say this is a “limited-time” deal, or “limited open-enrollment” for signing up. Some pitchmen use the term “Obamacare,” and even lie that they’re from the U.S. government. Pitchmen are going door-to-door and airing TV ads. Watch for blast faxes and emails. Seniors often are targeted.
The deal seems too good. Premiums often are unusually low. Signup also can be too easy. Just fill out a form, and no medical exam or detailed medical questionnaire. Even serious pre-existing conditions are ok.
Evasive answers. The sales rep is vague about coverage details...doesn’t clearly answer your questions...seems ill-informed...or evasively says “everything you need to know is in the brochure”...and is unwilling to show you the actual insurance policy.
Join association or union. You have to join an “association” or “union” to buy the coverage. Typically these groups are fake—they may not even relate to your occupation or interests. They help create an illusion that the bogus plan is real group health insurance.
Slick Internet sites. Bogus plans may have professional-looking websites that encourage you to buy “coverage” online. But the sites are small and vague about details. They may request your credit card or bank account numbers but don’t let you see the policy beforehand.
Slow response. You don’t receive your insurance card or policy promptly after signing up.
Suspicious payment delays. The hospital complains that your plan hasn’t paid your medical bills. The plan then keeps putting you off when you call—the payment delays are merely “accounting glitches” or “processing errors.”
The “federal oversight” con. Some plans lie that they don’t require state licenses because the plan is regulated by ERISA or another federal law.
