Since more and more people are getting health insurance plans, there are more and more scam health insurance providers. These companies usually go after new retirees, the elderly, and small business owners who can't get better rates from real insurance companies. Be very careful before you buy a health insurance plan. Read on to learn about three ways your health insurance company might try to trick you.
- Claims not being paid
Most of the time, fake health insurance agents get a lot of people to sign up quickly by offering them good deals. These illegal insurance companies keep paying out small premiums and medical claims, but if a big claim comes in or regulators catch them, it's like they never existed.
So, be careful if you aren't getting paid on time or if your service provider gives you fake reasons for not paying you. If you signed up for these illegal plans, you could be responsible for your employees' medical bills as well.
- Health plans that are not licenced
If the company you bought your health insurance from doesn't have a licence from the State Insurance Commissioner, you could be in trouble. If your service provider doesn't have all the protections that insurance laws require, the company may be a scam. In this case, your service provider is trying to trick you by selling you health plans that are not licenced.
Federal law says that insurance agents can't sell any ERISA or union plans that are legal. So, if your insurance agent tries to trick you by selling you a "ERISA" or "union" plan, you should tell your state's insurance department.
- Weird types of coverage at lower prices
If an unusual policy is offered to you, no matter what your health condition is, at a lower rate and with more benefits than other policies, you should also start to worry. Don't be fooled by the good deal, or you could end up getting ripped off. The "scammers" want to make a lot of money as soon as possible, so they try to sell as many policies as possible at good prices.
