Nobody's Fool?
Health insurance scams target entrepreneurs.
Fraudulent health insurance plan promoters are preying onentrepreneurs, and the government is concerned. A GeneralAccounting Office (GAO) survey in 2003 shows from 2000 to 2002, theU.S. Department of Labor (DOL) and the states found 144unauthorized entities covering at least 15,000 employers and200,000-plus policyholders, resulting in at least $252 million inunpaid medical claims. At the time of the survey, only about 21percent of that amount had been recovered. The DOL told Congressit's trying to crack down on the schemes, but some sayWashington lacks the authority to act quickly enough to endthem.
Assistant Secretary Ann L. Combs told the Senate FinanceCommittee, "Small employers are targeted due to the challengesbusinesses face in finding affordable health coverage." Combssays, on average, employers end up paying 20 to 30 percent more forsimilar health coverage than large employers and unions.
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