Health

Crime invades every part of life in the United States and around the world and sadly, even people trying to protect them and their loved ones from a financial burden caused by health problems can be at risk. Federal statistics show a steep rise in the number of fraudulent health insurance companies in recent years. What’s the result? Hundreds of thousands of Americans spend their money on worthless health care coverage. Most of the bogus insurance is provided through employer-sponsored programs where con men have access to hundreds of potential victims, or to self-employed workers and small businesses that may not be able to afford or participate in a decent group plan.

It has been suggested that the high cost of health care benefits in the United States has contributed to the rising number of health insurance scams. With more than 40 million Americans living without any kind of health care insurance, fraudsters have a huge market of people who want to think they are getting a deal on a service that offers medical protection for their families. In fact, a Georgetown University study found the dramatic increase in medical care insurance scams has risen at the same time health care insurance premiums have recorded double-digit rate hikes. This isn’t a coincidence.

Often, the scam does not reveal itself until one of these unfortunate people tries to use their health insurance to cover an approved medical situation. By then, depending on the family’s ability to pay for medical services without insurance, a financial crisis may already be in the works. State governments tend not to offer guarantees or financial protection when health care insurance plans are revealed as a swindle or if the insurance provider is unwilling or unable to pay for legitimate claims.

Despite the moral problems of causing such a horrible crime, fraudulent health insurance companies often get away with their stolen money intact. Authorities are unable to simply swoop in and arrest the bad guys; investigations take time and organization if they are to succeed in getting enough evidence to bring about a guilty verdict in court. Unfortunately, by the time such an investigation can be mounted and authorities can make a move, fraudulent health insurers have had a chance to hide their assets or have moved on to another location under another name.

There are several things that may make you suspicious about the legitimacy of a health insurance provider. First among these is price. Fraudulent medical insurance companies tend to offer cut-rate prices as a way of luring victims to hand over their money. The truth is that health insurance can be a pricey prospect. If you think you’re getting too good of a deal, you’re probably not getting a deal at all. As the old adage goes, if something seems too good to be true it probably is.

Continued in part 2…

Related posts:

1. Health Insurance Scams: How Can You Protect Yourself? Part 2

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This entry was posted on Sunday, November 8th, 2009 at 8:17 pm and is filed under Health Insurance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.