Low Cost Health Insurance: How To Avoid Insurance Scams

I am currently on Social Security Disability Insurance and I have Cobra health coverage. If you have more than $2,000, including a retirement account you are not eligible for SSI or Social Security Income in addition to SSDI. Also, you are not eligible for Medicare until you have been on SSDI for two years.

Extension on COBRA Coverage

I had to get an extension on my COBRA coverage because I was still disabled and not yet eligible for Medicare. Recently my COBRA coverage increased from $237.00 per month to almost $350.00. The very next month it went up to close to $400.00.

Trying to get Health Insurance with a Pre-existing Condition

I tried searching the internet and was contacted by a guy from United Health Benefits of America. He let me know he could get me a plan through a nonprofit organization called IAB. I could get a prescription plan and dental coverage, doctor visits, hospitalization coverage even for $270.00 per month even though I had a pre-existing condition.

If it Sounds to good to be True, It is

After giving them my credit card number, I was sent a packet from IAB with no information about prescriptions and stated it was not health insurance, but rather a health plan. This made me suspicious. I called them and asked about being covered for a pre-existing condition. They let me know I would not be covered until I was on the plan for twelve months. I let them know Charlie from United Benefits told me I would be covered. I asked for the phone number for United Benefits. I was given multiple numbers and all were disconnected. The packet I received stated I could send it back within ten days if I decided I didn't want the coverage. Next I got another pamphlet about dental coverage and a little bit of information about prescription coverage.

Write them Back within Ten Days

I did some more research on the net and found a listing of so called low cost health insurance plans.IAB was listed as one of them. I found out the California HIPPA Law states there are no insurance companies that will cover a pre-existing condition for six to twelve months after being on the plan. Watch out for the word plan. It's not the same thing as a medical health insurance company. The prescription plan was also not insurance, but a discount card. If you read the packets carefully, this was stated inside the packet.

Watch Out for the Word Plan

If the representative calls the company a plan that means, it's not really medical coverage. If the representative talks about a plan A prescription plan, it is a discount card. If they want you to pay with your credit card over the phone without seeing a contract, don't do it. You should be able to see the written plan before you pay for anything.

Writing Your Letter

First of all be sure to write back immediately, before the required ten days are up,for a refund so that they receive the letter in the mail before the ten days are up. Contact your credit card company and let them know you've been scammed. In your letter let them know you were given incorrect information by a representative whose phone number is now disconnected. You do not want the coverage and want a full refund. Let them know you have already made contact with your credit card company about these charges.

HIPPA Law and The Insurance Commissioner

Let them know in your letter that you never signed a contract and if you don't receive a refund you will take further action. Let them know you found out about the HIPPA Law and if necessary you will forward this letter to the Insurance Commissioner. I had a credit to my credit card within days and a refund check within two days of writing the letter to the prescription plan within a couple of days.

One Time Pre-Enrollment Fee

Do not fall for this either. I did. In my letter I did state that I had better not see any more charges on my credit card. Since I never signed anything, there is no contract as stated in your packet. I let them know I would be watching my credit card statements. My credit card assured me they would help me out if I was not fully refunded.