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Bogus health policies under the guise of “reform”

Friday, April 09, 2010

Though the recently passed health-care bill has been the talk of the nation, many of the details of the legislation are still being understood by consumers and lawmakers alike. And whenever there is confusion, there are scams.

Health and Human Services Secretary Kathleen Sebelius is warning consumers about a rash of scam artists taking advantage of the new health-care law to peddle bogus insurance policies.

Some hustlers are showing up at your front door, claiming there's a limited open-enrollment period to buy health insurance now (not true), while others have even set up toll-free call lines to peddle their schemes. Seniors and those who are uninsured right now are a special target of the scammers.

While federal health care fraud investigators will be on the lookout, and HHS has asked Insurance Commissioners to issue alerts to consumers in their states warning them of possible scams, take steps to protect yourself.

How to spot a scam:

* Legitimate insurance polices will not have a “hurry up and buy” component, nor have a "time-limited" availability. * Be wary of any policy that claims to offer benefits just because of the new law. * Policies that claim they were created or required by the new law are bogus. * Never buy insurance from an unlicensed agent. Check your state insurance website to see who is licensed to sell insurance in your area.

Other resources:

Read the brochure on recognizing Medicare scams published by the Office of the Inspector General.

View the video below for additional help in spotting and stopping Medicare fraud.