The government as well as private enterprises are trying to overcome the ever-growing cases of health insurance scams and fake medical insurance claims.
The National Health Care Anti-Fraud Association hopes that using the latest technology and raising awareness can be the deadly combination that helps health insurance fraud.
A lot of these medical insurance fraudsters have embezzled millions of dollars from unsuspecting individuals and small-business owners. Here are some common sham health insurance policies and how to defeat them.
Dreaded disease policies
This is an age-old scheme where an insurance provider claims to cover dreaded diseases like cancer, AIDS, cardiovascular illnesses or even accidents. Of course, if you actually want to claim you will never hear back from these scamsters.
Though some insurance companies will also offer legit schemes that offer such coverage, the number of loopholes will make it one big lie anyway. For example, unusual conditions for fulfillment, limited time frames with no renewal options and fixed amounts.
Tip: If you choose the right medical insurance, you are unlikely to even need such policies. If you still feel that the policy is great, do a background check on the agent and also cross verify with your state’s insurance department.
Stacked policies
Think about a large stockpile of “dreaded disease” policies and you have what is known as the stacked policy scam. These policies are either misrepresented by false advertising or the insurer is a con.
Even in cases where such policies are issued by legitimate companies they may be stacked in a way where your premiums are way too high and you have hardly any coverage, if at all.
Tip: While it’s best to avoid stacked policies altogether, if you are going to opt for one make sure that you read the fine print and make the necessary calls to your state regulator.
Remember if it sounds too good to be true – get yourself a magnifying glass and a nose for news.
