Beware of Health Insurance Scams with New Laws in Place

As new federal health insurance reforms recently became law, it is more important than ever for consumers to make sure they do not become the victims of scams looking to take them for a ride.

Many state insurance departments have provided information to consumers warning them about potential scams and how to protect themselves.

Reports from a number of officials indicate that fake agents and sales representatives are moving door-to-door posing to be employees with the federal government, along with peddling false insurance policies. Authorities say that older consumers are the main targets for these scams.

Consumers should be wary of door-to-door health insurance sales, requests for immediate acquisition of “limited enrollment” federal health policies, and other high-pressure sales tactics.

There are some tips that consumers can employ in order to lessen the chances of being scammed out of their money.

First, be suspicious of an individual arrives at your home or calls you and claims to be with the federal government trying to sell you something. Representatives from Medicare will never visit your residence or call you unless you request it.

Secondly, don’t be tricked via sophisticated sales pitches. In some states, the fraudulent sales reps are trying to sell you a bogus item called an “ObamaCare Insurance Policy.” They may also inform you that the policy is being made available during a “limited enrollment period” formed by the health care reform. Remember, health insurance policies are issued by companies, not via legislation.

Also be careful if an individual attempts to pressure you into signing anything or objects if you request someone else to be in attendance at the time of a sales pitch. Legitimate insurance agents and brokers should not pressure individuals or mind if they have someone they trust listen to their presentation with the prospective client.

It is also important for consumers not to provide personal information, including their bank account number, Social Security number of their Medicare number to strangers.

Individuals should also be sure an insurance agent and company are licensed within the state they are purportedly selling insurance in.

Be sure to do your research on a company prior to doing business with them to avoid any potential problems with fake sales.

In the event you think you have been targeted in a fraudulent insurance-related scam, call your state’s insurance department and speak with their fraud hot line.