10 Warning Signs
Watch for these warning signs of a possible swindle…
1. The coverage costs 25 percent or more below the norm, yet promises generous benefits and a large provider network.
2. The plan readily accepts people with serious illnesses and other medical conditions that other plans normally reject.
3. The insurance has few or no underwriting guidelines – the agent or rep appears almost too eager to sign you up.
4. You’re approached by an insurance agent, phone or direct mail. Honest group plans normally are sponsored by your employer — and aren’t sold directly to individuals.
5. The plan isn’t licensed in your state, and the agent (falsely) assures you the federal ERISA law exempts the plan from state licensing.
6. The plan seems like insurance, but the agent or rep avoids calling “insurance,” and instead uses evasive terms such as “benefits.”
7. The agent or rep doesn’t have clear answers to your questions, seems ill-informed, or avoids sharing information.
8. You’ve never heard of that health insurance company — and nobody else has, either.
9. You have to join an “association” or “union” to obtain the health coverage. But you get no voting rights, receive no bylaws or other material, and aren’t involved in the group’s activities.
10. Your hospital keeps calling you to complain that your health plan isn’t paying your medical bills. Often the plan’s reps keep making flimsy excuses, or stop returning phone calls altogether.
