Be Wary of Health Plans That Sound Too Good to be True

Consumers who are looking at different health plans given the current economy should proceed with some caution following a recent report from the Coalition Against Insurance Fraud (CAIF).

According to the CAIF, bogus health plans are on the rise nationwide. The end result is that consumers in need of the health care end up being defrauded of what savings they have.

CAIF reports a large number of states have had to issue emergency cease-and-desist orders, lawsuits or take other actions given the problem.

Research indicates that a number of consumers have been facing tens of thousands of dollars in medical bills when the fraudulent health plans failed to pay up. According to CAIF, at least 12,000 consumers have fallen victim to these fraudulent plans across the country. Among the damages have been stolen premiums to excessive, unpaid medical bills.

CAIF says that in many cases, fraudulent health plans say they will cover full health benefits but end up delivering lesser products like: fake coverage that turns out to be worthless; limited-benefit policies that are almost totally useless; medical discount cards that simply offer price cuts on medical services for which consumers pay themselves.

It is estimated that some 47 million Americans are currently without health insurance, thereby leaving many of them vulnerable to scams that are perpetrated nationwide.

As health premiums go up and jobs remain difficult for some to find, many consumers find it a struggle to locate affordable health care coverage.

In many cases, fraudulent plans say they will provide full health coverage, affordable premiums, and easy signup despite preexisting conditions.

The scams pitch with telemarketing, blast faxes, TV ads, emails and event crudely printed signs stapled to telephone poles.

In order to protect themselves, consumers should contact their state's insurance department if something sounds too good to be true; insist on obtaining the entire policy, not a summary and know it from front to back; and make sure the plan comes as advertised. That means full health coverage, limited-benefit or medical discount card.

One in 10 Americans Visits Health Insurance Site in Q4 2009

comScore, Inc., a provider in measuring the digital world, recently released a study of online health insurance activity in 2009.

The study noted that approximately 24 million Americans visited a health insurance site in Q4 2009, representing 10 percent of the total U.S. online population.

According to a comScore spokesperson, "Consumers are increasingly turning to the Internet as one of their first destinations to research health insurance, whether it is gathering information to evaluate options or seeking answers to questions concerning their current provider. Having a strong online presence serves as both a gateway to consumers as well as an important branding opportunity for health insurance organizations."

The released data shows that in Q4 2009, 23.8 million Americans visited a health insurance information site including both insurer and aggregator destinations.

Aetna Sites came in as the most visited destination with 4.8 million visitors (20 percent industry penetration), followed by Blue Cross Blue Shield Sites with 4.1 million visitors (17.4 percent penetration). Nine other health insurance sites each attracted at least two million visitors in the same time period.

"The Web serves as a critical channel for health insurance providers to engage with consumers and consumers are displaying increasing comfort in turning to the Web to obtain this often complex information," the comScore spokesperson added.

Farmers Insurance Unveils New Texas Consumer Product

The Farmers Insurance Group of Companies has unveiled a new homeowner's insurance policy, called "Farmers Next Generation Home Policy.'

The new policy provides coverage flexibility, innovative features and competitive pricing.

"Our 'Farmers Next Generation Home Policy' will provide our customers the ability to select a policy that they can tailor to fit their specific insurance needs,' said John Henle, Farmers State executive director for South Texas. "No two families are alike, so no two families have the same insurance needs, and this policy gives more options to suit every need.'

Available now, "Farmers Next Generation Home Policy' offers new discounts for professionals like physicians, educators and law enforcement personnel. Residences with newer roofs will also qualify for major savings.

Policy features include what many consumers might expect like replacement cost coverage for their home and personal property along with coverage they might not expect to be included like Identity Fraud.