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Coalition Warns: Bogus Health Plans Spreading Around U.S.

At a time when more Americans are fearing the loss of health insurance due to rising unemployment rates, the Coalition Against Insurance Fraud says consumers...
March 9, 2010

At a time when more Americans are fearing the loss of health insurance due to rising unemployment rates, the Coalition Against Insurance Fraud says consumers need to avoid fraudulent health plans that offer limited benefits or fake coverage. The coalition urges them to carefully consider offers before signing agreements, requesting the complete policy instead of a summary. They also would be wise to contact the office of the state insurance commissioner to ensure the plan is licensed and whether it has generated complaints.

The Coalition says typically, bogus plans promise full health coverage, affordable premiums, and easy signup despite preexisting conditions. Victims often must join a fake trade association or union, which reinforces the illusion of affordable and legitimate group health coverage. Some consumers have faced tens of thousands of dollars in medical bills when their fraudulent health plans wouldn't pay up. At least 12,000 consumers have been victimized nationally. The damage ranges from stolen premiums to large, unpaid medical bills.

Preying on Desperation (Battle Creek MI Enquirer 3/3/10)

Coalition Warns Against Bogus Health Plans (2/17/10)

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