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How To Spot Health Insurance Scams

by | Sep 9, 2022 | Health Insurance

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Fake Health Insurance Scams Are Still Out There

While Nevada Health Link takes fraud protection and prevention very seriously, and works alongside law enforcement to address fraud claims, falling for a scam can leave you vulnerable. Knowing the most common scams and red flags to watch out for is the best way to protect yourself against identity theft and financial loss.

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Nevada Insurance Enrollment logo - Nevada State outline divided into four colors of dark blue, light blue, orange and yellow

CAUTION – CAUTION – CAUTION

Be Cautious When Buying Health Insurance

This was in the news in November of last year (right before Open Enrollment), but we’ve noticed that we are still receiving calls from our members that they have been contacted by people trying to sell them fake health insurance. We just want to caution folks that the risks are still out there.

Companies Are Selling Fake Health Insurance

Health Insurance has become a big issue for many Americans over the past few years. As the costs of health care continue to rise, families without health insurance are looking for ways to afford those costs. That kind of stress makes them vulnerable to companies that take their money without providing needed services.​

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There Are More Fake Companies Popping Up Daily

In 2018, the Federal Trade Commission requested that a federal judge shut down a Florida-based operation that was accused of collecting more than $100 million by, “preying on Americans in search of health insurance, selling these consumers worthless plans that left tens of thousands of people uninsured.”

According to the FTC’s complaint, the defendants behind Simple Health lured consumers through a network of deceptive lead generation websites that claimed to provide information about comprehensive health insurance. On the sites, the defendants falsely held themselves out as experts on and providers of government-sponsored health insurance policies, such as those offered under Medicare and the Affordable Care Act. In many cases, the sites also misleadingly featured the logos of the AARP or well-known insurance carriers, such as Blue Cross Blue Shield, when in fact the defendants were not affiliated with such entities.

Read the full article:
https://www.ftc.gov/news-events/news/press-releases/2018/11/ftc-halts-purveyors-sham-health-insurance-plans

 

Stating Your Income For Health Insurance Subsidy

Stating Your Income For Health Insurance Subsidy

When you claim you make a certain amount of money in a year (and receive a subsidy), you must try to be as accurate as possible and notify them of any changes that may occur throughout the year. Be honest in stating your income. There are very serious consequences to playing games with your income.

Can You File for Medical Bankruptcy?

Can You File for Medical Bankruptcy?

The short answer is yes; medical debt is considered non-priority unsecured debt and can be discharged in bankruptcy. While you cannot target medical debt in bankruptcy, this process can help lower payments or eliminate the debt altogether.

Health Insurance Quotes

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2). Online Quote
3). In Person

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Would You Recognize These Common Health Insurance Scams?

There are numerous health insurance options to choose from, and navigating the system can feel a little daunting. Unfortunately, scammers take advantage of people’s confusion by pretending to offer cheap, hassle-free help with obtaining health insurance coverage.

Unfortunately, the health insurance plans these people are selling are inferior (very skimpy coverage) and sometimes completely fake. What they promise you on the phone is NOT what you are receiving, then the scammers take your money, along with all your sensitive personal information and provide nothing in return.

According to the National Health Care Anti-Fraud Association, health insurance scams account for up to 10% of total health care expenditures, equaling more than $300 billion annually. The Health Insurance Portability and Accountability Act makes health care fraud a felony, providing some protection to consumers. Unfortunately, this is still a huge problem, particularly during the annual Open Enrollment Period.

 

By page visits (this month)

#1) Health Insurance Subsidy Chart

#2) Health Insurance

#3) Health Insurance WITH a Subsidy

#4) Insurance Blog

#5) Request a Quote

Identifying Health Insurance Scams

The Scam: Pay for a New Medicare Card or Lose Your Coverage

Scammers target older adults with phone calls claiming that they are approaching their Medicare card’s expiration date and that they will lose their health insurance coverage unless they pay a renewal fee.

The Truth

Currently, federal regulations do not require Medicare beneficiaries to obtain new Medicare cards. If you lose your card or it becomes too faded to use, you can easily replace it by contacting 1-800-MEDICARE. Neglecting to do so does not result in loss of coverage.

The Scam: Fake Medical Discount Plans

Some scammers advertise paid health care discount programs that promise to cut down on your out-of-pocket health care costs. Some plans even claim to meet the Affordable Care Act’s basic coverage requirements. DO NOT enroll into any plan unless you are speaking with a licensed agent that you can verify by visiting the Department of Insurance, and ensure the plan you are researching is an ACA Qualified Health Plan.
Here’s where you can verify the license in Nevada:
http://di.nv.gov/ins/f?p=licensing:search

The Truth

Medical discount plans are not always a reliable option for controlling health care costs. If you are considering a specific plan, contact the Nevada Division of Insurance (or your state’s insurance commissioner’s office) to find out if the plan you are considering is legit. You should also confirm that the plan can be used at your health care providers office. We do not recommend these plans. They do not have coverage like an ACA (Obamacare) plan does.

The Scam: Provide Sensitive Personal Information to Get a Price Quote

A scam website may require you to put in sensitive personal information to get a price quote for health insurance. This may include your Social Security Number, credit card number or bank account number.

The Truth

Providing general personal information is required for getting an accurate price quote for health insurance. This typically includes your zip code, age, household income and whether you smoke. A website that requires detailed or sensitive information could be fraudulent.

Be Safe!

Buy Health Insurance from a Local, Reputable, Licensed Health Insurance Agent

One of the simplest ways to ensure that you do not fall for one of these health insurance scams is to enroll in a policy with the help of a licensed and experienced health insurance agent. At Nevada Insurance Enrollment, we help you find affordable health insurance that provides the coverage you need. We focus our efforts on selling Nevadan’s Qualified Health Plans that are ACA (Obamacare) compliant. We refer to these plans as “real health insurance”.​

Call for FREE Help
(702) 898-0554

↑ click to call ↑

Stating Your Income For Health Insurance Subsidy

When you claim you make a certain amount of money in a year (and receive a subsidy), you must try to be as accurate as possible and notify them of any changes that may occur throughout the year. Be honest in stating your income. There are very serious consequences to playing games with your income.

Can You File for Medical Bankruptcy?

The short answer is yes; medical debt is considered non-priority unsecured debt and can be discharged in bankruptcy. While you cannot target medical debt in bankruptcy, this process can help lower payments or eliminate the debt altogether.

Get The Most From Your Health Insurance Plan

Today’s Health Insurance plans may offer benefits above and beyond just doctors and hospitals, such as free preventive services, fitness programs, teledoc/telehealth, and so much more!

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