It’s long been said that if something seems too good to be true, it probably is. That adage definitely holds true when it comes to health insurance. The Coalition Against Insurance Fraud (CAIF) reports that as many as 200,000 people have purchased fake health coverage over the last three years.
How does this happen?
According to the national Association of Insurance Commissioners (NAIC), “fake insurance companies defraud consumers by collecting premiums for bogus policies with no intention of paying claims. These ‘companies’ might offer policies at costs that are significantly lower than competitors’ prices or they might be difficult to reach by phone – if there is a listed phone number at all.”
In an effort to prevent fraud and protect consumers, the NAIC has established a simple three-step plan you can follow to protect yourself from becoming a victim of insurance fraud.
- If you are unsure about the insurance company or agent you are dealing with, STOP before signing any paperwork or writing a check;
- CALL your state insurance department – easily reached by phone; and
- CONFIRM the company or agent offering insurance is legitimate and licensed in the state.
You can contact the Washington State Insurance Commissioner’s Office at http://www.insurance.wa.gov/consumers/index.shtml, or call 1-800-562-6000.
If you need more information involving other states you can the NAIC website at www.naic.org/documents/consumer_alert_beware_insurance_fraud.htm or call the NAIC Consumer Hotline at 1-866-470-6262.
Note: Also beware of discount plans for medical and dental services. Though they are usually legitimate and offer good discounts, they are not insurance and there are limitations.
