How To Investigate Health Insurance Providers
The growing number of consumers needing reasonably priced health insurance plans with decent coverage has led to the mushrooming of scam health insurance providers.
These providers often target new retirees, the elderly, young families, and small-business owners who can't negotiate health insurance group rates with legitimate insurers. Here's how to find legitimate low cost providers.
Be very cautious. Before you invest in any health policy, here are three things to look for to get an idea if a health insurance company is trying to scam you.
1. Failure to pay health insurance claims
Usually fraud health insurance agents sign up a huge number of people quickly by offering them lucrative deals. These insurance providers offer small premium amounts and inflated medical coverage terms, but, unless there are substantial complaints about unpaid claims or regulators catch them, these illegal companies vanish as if they never existed.
You may have already been scammed if you are getting delayed payments or your service provider is offering excuses for the failure to make the payments. If you have signed up for these illegal plans, you may still be liable for the medical bills when your carrier vanishes.
2. Non-licensed health insurance plans
If you are considering a company to sign up with or if the company from which you have bought your health care policy is not licensed by your State Insurance Commissioner, you are in for trouble. If all the protections of insurance regulation do not apply to your service provider, that is, they are not licensed, then the company may be phony. In this case your service provider is scamming you by selling non-licensed health plans.
Insurance agents are not allowed to sell any legitimate ERISA or union plan as federal law governs them. Not too get technical, but, if your insurance agent tries to dupe you by mentioning “ERISA” or “union” plan report them to your state insurance department immediately.
3. Unusual health insurance coverage offered at lower rates
If you are offered unusually attractive coverage, irrespective of your health condition, at an surprisingly low rate with many more benefits in comparison to other insurers, it's time for you to hit the panic button. Do not get fooled by such lucrative offers. They are designed to take your money and leave you medically and financially stranded.
The ‘scamsters’ aim to collect a huge amount of health insurance premiums as quickly as possible so they try to sell as many policies as possible by offering attractive prices. When they saturate the market, they disappear.
This does not need to happen to you. There are some trusted providers. Search online and locally and do your research. Here is a legitimate provider you can start with....Hometown Quotes - click here.
Jim DeSantis
As Posted at: Weight Master Blog
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Jim DeSantis at 8:33 PM
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8 Comments:
One of the worst carriers in the industry (and yes they are still selling policies across the country)
is the Mega Life & Health Insurance company and their sister company Midwest National Life. Both are heavily promoted the National Association for the Self Employed (NASE) and the Alliance for Affordable Services. BUYER BEWARE. Get more information here: http://www.nowpublic.com/tech-biz/mega-life-health-health-markets-finally-get-what-they-deserve
Thanks for the comment! I went to your link regarding this company. Good information for consumers to be aware of.
Jim DeSantis
Thank you for posting my comment Jim. The more people who know, the less that will fall victim to this organization. The Stuart Law firm in California is currently handling multiple cases against Mega & Midwest. The worst case was Doug & Dana Christensen. Their Mega "agent" replaced a legitimate Blue Cross major medical policy knowing that Doug had suffered from Bone Cancer in the past. After canceling their Blue Cross policy and replacing it with a Mega limited benefit schedule plan, Doug's cancer returned and Dana was left with $460,000 of unpaid medical bills. Before Doug died he told Dana that he wanted her to divorce him so that the unpaid medical bills would not be her burden after his passing. Replacing their Blue Cross policy was a morally reprehensible act that can never be reconciled. However, the Stuart Law firm is doing their very best to inform other consumers and represent those that are currently stuck with Mega/Midwest due to the inability to obtain other coverage after developing conditions that warrant them uninsurable on the individual Health Insurance market. For more about the Stuart Law Firm visit their web site here http://www.stuartlaw.us/practice-areas.jsp
Doug and Dana are another prime example for reform of our health care system.
While I do not believe socialized medicine is the answer, there needs to be a government mechanism that protects people from such practices.
Jim
Amen to that! However, I hope whomever is appointed as the Health Insurance "czar" does a better job than our various State Departments of Insurance. This all happened on their watch and sadly this organization is still able to sling their garbage from coast to coast. I think the answer is a "suitability clause".
For example a series 6 or 63 licensed financial broker must make suitable recommendations when it comes to financial products. For example, if a licensed broker sells a variable annuity to a 75 year old and locks up their retirement money for 15 years (e.g. 15 year surrender charge) that broker can be held legally liable for making an "unsuitable" recommendation. Not only the Broker, but the financial brokerage house and the insurance carrier. They can actually be forced by law to return any and all funds to the senior citizen and be liable for any potential interest lost during the transaction.
However, with Health Insurance, there is no "suitability clause". In fact, the final decision maker (as to whether or not the product sold is suitable) is the policy holder themselves. That policy holder only has a "ten day free look" to terminate the policy before it's placed in to force. Sadly, most consumers are not "insurance smart" and this is what has led to the kind of abuse that Mega/Midwest have caused.
Mandating a "suitability clause" on all Health Insurance products would go a very long way to curbing and eventually ending the fraud that the Health Insurance industry is unfortunately rife with.
As a former TV News Anchor and Editor my goal was to make complex subjects understandable to my entire audience.
Some call this "dumbing down". I call it making sense.
Any contract that cannot be written in plain language is deliberately crafted to favor the writer of that contract. This is "lying by omission" as far as I am concerned.
Fine print is a deliberate way to hide the negatives. It is fraud. Just look at TV commercials. This is a classic example of lobbyists getting Congress to allow their clients the right to commit fraud.
"Buyer Beware" is really "Beware of the Baloney" when they are claiming you will get prime rib if you buy now!
The company you cite is a good example of the old "bait and switch" selling tactic.
In my view, anyone who rips off a consumer deserves heavy fines and jail time - period! No second chances! Caught once - jail time and heavy fines!
Jim
A triple Amen to that Sir!
Thanks for your contribution to Take Charge of Your Health Care Carnival. My readers will appreciate this valuable and important information about health insurance. In general, if it sounds too good to be true, it probably is.
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