The Federal Trade Commission has issued a warning about fraudsters who are tricking consumers into shelling out cash for fake health plans. Make sure to exercise caution: before signing up for any health insurance or discount plans, explore all of your options, and verify claims made about coverage.
Know that marketers who call to promote a way for you to save money on healthcare costs could be luring you into a scam.
Recently, the FTC announced that it is bringing charges against Partners in Health Care, in addition to one of its marketers for taking advantage of consumers (in particular those whose were not native English speakers) and convincing them to purchase bogus medical discount cards.
The consumers were told that they were purchasing a qualified health insurance plan under the Affordable Care Act. However, after paying an enrollment fee and making monthly payments ranging from $99 to several hundred dollars, these consumers never received the insurance they were promised.
Make sure to do thorough research before agreeing to buy a health insurance plan. The FTC says your state insurance commissioner’s office will be able to let you know if a plan is not insurance. They can also tell you if the seller is licensed in your state.
You can locate your state insurance commissioner’s office by visiting the National Association of Insurance Commissioners website or Consumer Action.