Health and Suppliments

State Regulators have recently said that bogus health plans advertising comprehensive coverage at bargain prices are on the rise. These attempts to lure desperate customers are scams as customers will be paying for health plans that would not be covering their health bills.

Oklahoma Insurance Commissioner Kim Holland remarked that he has never seen anything like that and added that bad economy has fueled the uptick in scams.

From USAToday.com:

The nation’s new health care law may inspire more scams that prey on public expectations for expanded coverage and misrepresent the changes, Secretary of Health and Human Services Kathleen Sebelius warned states this month.

Among 37 insurance bureaus responding to a coalition survey last fall, 57% reported increases in health plan scams.

James Quiggle of the Coalition Against Insurance Fraud, which represents consumers and insurers, said: “There’s high unemployment, health premiums are expensive and tens of millions of people have no health coverage. This is an ideal breeding ground for scams.”

“I’ve never seen anything like this,” said Oklahoma Insurance Commissioner Kim Holland, who said the bad economy has fueled the uptick in scams.

In recent weeks, Missouri has cracked down on 13 companies. California has ordered firms to stop selling misleading health discount cards. Tennessee regulators have seized a company they allege collected more than $14 million from people across the country — then stranded them with unpaid bills.

It was suggested by state insurance regulators that consumers must check with their offices before purchasing a health plan.

Comments are closed.