Guest Post by Steve Anderson
While millions of Americans are anxiously waiting for the various provisions of this year’s landmark health reform legislation to be enacted, they should also be on the lookout for criminals who haven’t hesitated at all to use the legislation as a way to take advantage of consumers. So how can individuals protect themselves from fraud while seeking individual health insurance? Consumers can take several common-sense defensive measures.
- Trust your gut. “For starters,” says Marc Young, spokesman for Insurance Commissioner Kim Holland, co-chair of the National Association of Insurance Commissioners’ Anti-Fraud Task Force, “individuals need to remember the familiar admonition that ‘if it sounds too good to be true, it probably is.’ “If a plan is providing extensive coverage for just “pennies a day,” beware.
- Look for suspicious signs. A common persuasion tactic is to use an image of someone official to lend legitimacy to a plan. “I’ve never seen a president used by companies to market products more than with President Obama,” says Young. “If the plan is called ‘ObamaCare,’ it’s definitely not endorsed by the U.S. government,” says Jim Quiggle, spokesman for the Coalition Against Insurance Fraud. (Also, beware of marketers who tell you their plan is approved by the government. Until insurance exchanges take effect in 2014, the government will not approve any insurer’s plan.)
- Stop. Call. Confirm. First, ask the marketers to provide proof that they’re licensed by the government. Then, verify their information. “Consumers need to stop before they purchase a plan and make a quick call to their state insurance department to confirm that the plan provider is actually licensed to do business in their state,” Young says.
- Take your time. “Don’t bend to pressure from a marketer who presses you with a ‘limited-time offer’ that claims time is running out for enrollment,” Quiggle says, “and definitely don’t provide bank account or credit card information until you’ve checked out the policy thoroughly.”
- Compare. State departments of insurance can also give consumers a look at the complaints against plan providers, so they can compare not just on price, but on coverage. Consumers can also look to reputable online Web sites to compare policies and prices to get a sense of what comparable coverage might cost.
- Always read the fine print. “The bottom line is that no matter where you’re buying coverage – whether it’s an unfamiliar company or a well-respected carrier – you need to read your policy,” says Charles Smith- Dewey, founder of healthinsurance.org. “It’s absolutely critical that health insurance consumers know exactly what they’re buying. Their health and their lives depend on it.”
Steve Anderson is an editor at healthinsurance.org, a consumer-focused health insurance site. For the full article, click here.
