Health, 3 Possible Ways In Which Your Health Insurance Company Is Swindling You

by Donald Saunders - Date: 2009-03-30 - Word Count: 464 Share This!

The growing number of people taking up medical insurance policies has resulted in an increase in the number of scam medical insurance providers. These health insurance providers usually target new retirees and seniors who can't negotiate better rates with legitimate health insurers. Read on to get an idea about 3 ways in which your health insurer may try to scam you.

1. Not paying out on claims

Usually sham health insurance agents try to sign up a very large number of people quickly by offering them lucrative deals. These insurance providers themselves pay small premium amounts and settle small medical claims however, if there is a sizeable claim has to be met or regulators catch up with them, these illegal companies simple disappear as if they had never existed.

So, just beware if you are getting delayed payments or your insurance provider is offering poor excuses for failing to pay out. If you have one of these illicit plans you could also find that you are liable for medical bills for your employees as well if you have purchased a plan as a small business employer.

2. Offering medical plans which are not licensed

If the company from which you have bought your health plan does not hold a license from the State Insurance Commissioner then you can be in trouble. In this case your insurer is almost certainly scamming you by selling medical plans which are also not licensed.

You should also note that agents are not allowed to sell union or ERISA plans, both of which are regulated by federal law. So, if your insurance agent tries to dupe you by selling you an union or ERISA plan you should report this to your state insurance department.

3. Unusual cover being sold at lower rates

If you are offered unusual coverage 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 huge amounts of money as quickly as they can and so they will try to sell as many plans as they can as fast as they can before they disappear.

Of course these are only a few of the numerous tricks that the scammers use but in most cases the presence of one or more of these things ought to make you stop and look closely at exactly what you are buying.

Getting medical insurance from legitimate insurance companies does not have to cost you a fortune so get some free, no obligation affordable health insurance quotes today from one of this county's top insurance providers.

Related Tags: health insurance, medical insurance, health insurance policy, health insurance quote, medical insurance plan

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