February 10, 2006, Newsletter Issue #19: Avoid Health Insurance Fraud

Tip of the Week

When you’re purchasing health insurance, beware of the scammers. Fraud happens, but you can avoid becoming a victim if you look for these warning signs:

Unbelievably good prices: A plan with benefits and prices that are significantly better than comparable plans offered by other insurers.

Everyone’s insurable: The agent tells you that anyone can be covered by their plan, no matter what their health or age is.

The word ‘insurance’ is missing from all the paperwork: nowhere in any of the marketing materials or paperwork is ‘insurance’ mentioned.

You are required to pay for your plan in cash, or make a large payment up front.

No proof of coverage: You are not given your proof of coverage when you apply or it doesn't show up by the promised time.


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