How Health Insurance Fax Scams Work

More people have been falling for health insurance scams in recent years, as health insurance premiums have gone up and the economy has declined. It is good for consumers to know how these scams work so they can protect themselves against them.

This is how the scams start. The health insurance scam company sends "fax blasts," or unsolicited faxed advertisements, to local workplaces. The faxed flyers usually look like they're advertising a comprehensive health care policy at a great, low rate. The flyer says the company will sign you up with no questions asked, or that it's the amazing plan "as seen on TV."

Sounds too good to be true? Just might be.

According to the numerous complaints that attorney generals across the country have been getting, these plans are actually scams. If you read the fine print, you'll realize you're actually signing up for a discount plan, not a health insurance plan, and you're getting little if any actual coverage.

Many consumers have found this out the hard way when they went to the doctor one day and found that their plan had been dropped or that their card is getting declined.

Some consumers have ended up stuck with bills in the tens of thousands after suffering expensive illnesses and finding out that their "insurance" wasn't going to cover any of it.

When people call to try to get their money back or find out why their health insurance plan has been dropped, they are often met with a disconnected line. Many of the phone numbers on the Web sites of these companies have been disconnected.

Complaints from consumers have led some states to take actions against these companies, but they are still in operation in many other states. That is why it is important for people to be aware of how these scams operate so that they can avoid falling for them.

If you are considering a health insurance plan that you aren't too sure about, you can check with your state's department of insurance to make sure that it is a legitimate program and not a scam.

Sources: Missouri Department of Insurance