Faking It
Is your health policy legit?
As they try to find affordable health coverage for their
employees, some business owners are falling victim to fraud. The
U.S. General Accounting Office reports that the number of fake
health insurance policies being sold to individuals and small
businesses is on the rise. In response, the National Association of
Insurance Commissioners has launched a nationwide awareness
campaign called "Fight Fake Insurance: Stop. Call.
Confirm."
"Before you sign a contract or write a check for any type
of insurance or medical discount product, call your state insurance
department and confirm that the company is legitimate and licensed
to do business in your state," advises Sandy Praeger,
insurance commissioner for Kansas, and NAIC's
secretary-treasurer. Signs of fake health insurance include
aggressive marketing and high-pressure sales tactics, premiums 15
percent or more under the average price for comparable insurance,
and few coverage limitations. The rise in popularity of medical
discount cards is also presenting scammers with more opportunities,
so research these as you would insurance.
If you suspect you've bought a fake policy, immediately
report it to your state insurance department. They can begin action
against the entity that sold it to you, try to recoup what you
paid, and direct you to a legitimate source for coverage.
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Jacquelyn Lynn is a freelance business writer in Orlando,
Florida.