They're back. They're slimy. And they want your money. They are health care hucksters.
In recent months, insurance regulators have been wrestling with what looks like a new wave in health-care scams, perpetrated mainly against the weakest of the flock: individuals and small-business owners.
Many of these frauds are similar to those that siphoned millions of dollars from unsuspecting consumers in the early 2000s. A few new nettlesome flavors have popped up, too--such as discount cards promising savings on doctors' visits and hospital stays (often marketed as real insurance) and human-resource service providers who also peddle sham health insurance.
Can YOU BELIVE THIS ? That these scumbags in real world do this ? This is simply theft grand theft of the highest accord they need to be jailed fined and shutdown! I did not even know about this con artist ! LIFE insuarnce youpay for and don't have ? How is that possible ? How can the feds allow this to happen ? THese people are supposed to be licensed and bonded to sell policies so how did they get offices able to sell insurance that didnt pay out ? Somethings wrong here really wrong and the american public better stndup and put these scums away !
In the last U.S. scam wave, between 2001 and 2003, four fake insurers left consumers high and dry with approximately $85 million in unpaid medical bills, according to research by the Commonwealth Fund, a New York-based health-care research foundation and the Georgetown University Health Policy Institute.
Dreaded Disease Policies
In this time-worn scheme, an insurance provider claims to offer coverage for medical expenses related directly to a so-called "dreaded" disease like cancer, heart attacks, strokes or just an unfortunate accident. But when the bills come, the sham company is long gone with your premiums in its pocket.
Discount Cards
The promise of 15% off doctors' visits and hospital stays may sound like a bargain, but often these offers aren't real--unlike the crooks that market them. Some legitimate insurers offer discounts for "up to" a certain percentage, when in fact most of the time the savings are far more modest. These savings may also apply only to very specific treatments.
Stacked Policies
Imagine a bunch of "dreaded disease" policies piled on top of each other. At best, the policies are mis-marketed; at worst, the insurer is a fraud.
Swiss cheese has nothing on some of these policies, though they may not be fraudulent per se. Exceptions abound, and you may end up paying higher premiums while missing out on basic coverage. Call your state regulator and read the fine print before getting suckered. Actually, don't bother--just avoid these plans altogether.
Faith-Based Plans
These programs collect attractively priced monthly premiums from members of a local or national congregation. (Most require members to uphold certain standards, such as no smoking, alcohol or premarital sex.) While plan members take it on faith that their medical bills will be covered, many won't be. Worse, there is little recourse to extract the money because programs tend not to be regulated.
Sadly, battling health-care scammers is a lot like trying to plug holes in a dike. But that doesn't mean you have to make it easy on them. "The bottom line is that health insurance is expensive for a reason, mostly because medical care is expensive," says Kofman. "Health insurance isn't going to be a lot cheaper depending on how you sell it."
In other words, if it smells too good to be true, it probably is.
