3 Ways Your Health Insurance Company Is Taking Advantage of You
The surge in health insurance policy purchases has led to a rise in fraudulent health insurance companies. These entities often focus on new retirees, the elderly, and small-business owners who may face challenges negotiating favorable rates with reputable insurers.
The surge in health insurance policy purchases has led to a rise in fraudulent health insurance companies. These entities often focus on new retirees, the elderly, and small-business owners who may face challenges negotiating favorable rates with reputable insurers. Exercise extreme caution when considering investments in any healthcare policy. Keep reading to explore three methods through which your health insurance provider might engage in fraudulent activities.
1. Nonpayment of claims
Unscrupulous health insurance agents often attract a significant number of consumers by offering appealing deals. These illicit insurance providers consistently handle minor premiums and medical claims; however, when faced with a substantial claim or regulatory scrutiny, they disappear as if they never existed. Therefore, exercise caution if you experience delays in payments or if your service provider provides excuses for non-payment. If you have enrolled in these illicit programs, you may be held responsible for your employees’ medical expenses as well.
2. Non-licensed health insurance schemes
You could be in jeopardy if the company from which you purchased your health insurance coverage lacks licensing from the State Insurance Commissioner. If your service provider is not subject to all insurance regulations, it may be engaging in fraudulent activities. In this case, your service provider is attempting to defraud you by selling unlicensed health policies.
Insurance agents are not permitted to market ERISA and union plans because they are governed by federal law. Therefore, if your insurance salesperson attempts to defraud you by selling an “ERISA” or “union” plan, report them to your state insurance department.
3. Unusual coverage at a reduced cost
If you encounter an offer that provides exceptional coverage irrespective of your health condition, with lower premiums and significantly more benefits than other insurers, it’s a cause for concern. Don’t be deceived by the alluring offer, or you might fall victim to a scam. Scammers aim to amass money quickly by selling numerous policies at low costs. Stay vigilant and avoid being taken advantage of.