3 Ways In Which Your Health Insurance Company May Be Conning You

The rising number of people signing up for medical insurance plans has led to a mushrooming of scam medical insurance providers. These medical insurance providers usually target new retirees and seniors who cannot arrange better rates with legitimate insurers. Read on to learn about 3 ways in which your medical insurer can scam you.

1. Not paying out on claims

Usually scam medical insurance agents try to sign up a huge number of people quickly by making them very lucrative offers. These insurance providers themselves pay small premium amounts and meet small medical claims but, if there is a sizeable claim has to be met or if the regulators catch up with them, these illegal companies disappear as if they never existed.

So, just beware if you are getting delayed payments or your insurance provider is offering poor excuses for their failure to pay out. If you have signed up for these illegal plans you might also be liable for medical bills for your employees as well if you have arranged a plan as an employer for your business.

2. Providing medical plans that are not licensed

If the company from which you have bought your medical plan does not hold a license from the State Insurance Commissioner then you could find yourself in difficulty. In these circumstances your insurer is almost certainly conning you by offering health plans that are also not licensed.

You also need to know that agents are not permitted to provide ERISA or union plans, both of which are governed by federal law. So, if your insurance agent tries to dupe you by selling you an ERISA or union plan you ought to report them to your state insurance department.

3. Unusual coverage being offered at lower rates

If you are offered an unusual level of cover regardless of your health condition and at a lower rate than you would expect from other insurance agents then you should be very cautious. Do not get taken in by an apparently too attractive offer because you are very likely to find yourself being taken for a ride. The scammer's aim is to collect large amounts of money as quickly as they can and so they will attempt to sell as many policies as they can as quickly as they can before they disappear into the night.

Naturally these are just a few of the numerous tricks that the scammers get up to but in almost all cases the existence of one or more of these ploys ought to cause you to stop and look closely at exactly what you are buying.