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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

 

Medical Loss Ratio

Medical Loss Ratio

This Medical Loss Ratio states that when a family or individual buys a medical plan, 80% of every dollar collected and paid to an insurance company MUST pay medical claims/research. So that leaves the insurance company to pay ALL of their expenses with the remaining 20%. .20 cents on the dollar for their employees, buildings, broker costs, etc.

My Car Was Stolen! What Does My Auto Insurance Cover?

Will Getting Married Affect My Auto Insurance?

One thing that many people are surprised to see impact their insurance premium, is their marital status. Generally speaking, married people spend less than singletons on their auto insurance, even when all other factors are the same. Simply put, married couples pay less.

Health Insurance Quotes

1). By Phone

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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

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Updating an Auto Insurance Policy: When and How

You don’t have to wait until renewal time to make adjustments to your auto policy. Updates can be made as circumstances in our lives change to ensure you have the proper coverage for your needs and budget.

How Collisions With Animals Affects Your Auto Insurance

Knowing how to react when they appear can greatly reduce your chances of being involved in an accident. While hitting an animal can be against your natural instincts, swerving to avoid it could cause a worse crash that ends up in major fatalities.

Coronavirus and Your Health Insurance

Nevada Health Link has responded to Governor Sisolak’s Emergency Declaration of March 12, 2020 due to the coronavirus, also known as COVID-19. It announced an Exceptional Circumstance Special Enrollment Period. This allows Nevada residents who missed the “Open Enrollment” period to enroll in a qualified health insurance plan through the state-based exchange platform.

Disclosing Health Care Prices – Trump’s Executive Order

The Department of Health and Human Services announced that there will be two new rules created to help improve competitive pricing between hospitals, health insurance issuers, and health plans. The effort is aimed at helping to empower patients when they make their health insurance decisions.

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