In the midst of a tight economy and in the wake of the new national health care reform bill, state and federal regulators warn about a surge in health care-related scams.
According to an October 2009 survey conducted by the Coalition Against Insurance Fraud, 57 percent of state fraud bureaus reported a higher incidence of health insurance fraud last year compared to 2008. The increase was largely attributed to “unauthorized entities selling fake coverage” and “the rise of medical discount plans.”
Additionally, the new health care reform bill quickly sparked new scams; shortly after it was signed into law, the U.S. Department of Health and Human Services issued a warning to consumers to beware of health insurance offers claiming to be part of new federal regulations.
To avoid getting ripped off, the BBB recommends taking the following steps when shopping for health insurance coverage:
Research the company with the BBB. Always check out the insurer’s BBB Reliability Report online at wynco.bbb.org. Reliability reports are free and tell you if the business has received any complaints and if so how many, if any government actions have been brought against the business, and its BBB rating.
Confirm the company is licensed with the state insurance commissioner. Each state has a department devoted to regulating insurance companies. Make sure the insurer is licensed to operate in your state.
Read the fine print carefully. Make sure all verbal commitments are in the fine print. Also confirm with your pharmacist and doctor that they accept the plan you’re considering.
Recognize the difference between insurance and discount medical cards. Some consumers purchase what they think is health insurance but is actually a discount medical card that can only be used to get reduced rates at limited doctor’s offices and pharmacies.
Beware of copy cats. Some phony insurers go by a name that is similar to a trusted company. Confirm that you’re dealing with the right company that has a good reputation.
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About the BBB
The Better Business Bureau, founded in 1912, is a champion for ethics and trust in the marketplace. Only businesses that meet the high BBB standards are invited to become BBB Accredited Businesses. Today, 128 BBBs across the United States and Canada rate more than 3 million local and national businesses and charities with scores ranging from A to F. Only a BBB Accredited Business may elect to participate in BBBOnLine, one of the most trusted and recognized Internet seal programs in the world.
The BBB serving northern Colorado and Wyoming topped 1.1 million instances of service to consumers and businesses in 2009. These services include reliability reports on local companies and charities, access to companies that can be trusted by industry, help with dispute resolution, and trustworthy information on consumer and business topics.
Luanne Kadlub, BBB Media Specialist, 970-686-9307, lkadlub@wynco.bbb.org