How the scams work
You’re contacted. An insurance agent or other rep may try to sell you group health insurance at rock-bottom prices. You may also receive slick marketing material in the mail, or see enticing ads.
Typically you’re promised premiums up to 50 percent below normal — plus superior coverage and a large, convenient network of skilled medical providers.
Coverage too easy. The insurance also is easy to obtain — too easy. You need few or no medical exams or medical questionnaires. And you can sign up even if you already have an illness or injury for which other plans turn you down. You may simply have to join an association or union and write out a premium check.
No licenses. The agent or rep also falsely insists that federal law exempts the plan from state licensing (in fact states do require licenses). It’s an amazing deal — and phony.
No insurance. You have no health coverage or provider network. Your insurance company is fake, and the “association” exists only on paper.
Your premium money is being stolen.
