Don’t be fooled.
The FBI is warning against a new scam shilling discounted medical insurance.
The bureau issued the warning on April 30, noting that the “emerging” scheme has seen hundreds of people across the country lose thousands of dollars.
According to the agency, discounted medical insurance scams typically occur when people looking for affordable options are contacted about misleading or fraudulent offers on legitimate medical insurance.
These scams can leave victims with mounting medical debt as they think their medical care is covered and can be very hard to get out of.
They typically begin when a person is randomly contacted by unknown businesses claiming to provide special deals and discounts.
The fraudster uses misleading tactics to reel people in, such as claiming to be a legitimate medical insurance provider, offering time-limited special rates, or promising free services with hidden fees to convince people to register on the spot.
To protect against these scams, the FBI offered several tips:
- Contact the state insurance commissioner or the Better Business Bureau to verify that the medical plan offered is from a legitimate company.
- Reach out to your current medical providers to confirm that they accept the insurance plan.
- Review policy documents and read the fine print to guarantee you understand what you are agreeing to.
- Do not agree to or pay for anything upfront.
To put it plainly, the FBI said, “If the plan seems too good to be true, it probably is.”
People who think they’ve been scammed should file a report with the Internet Crimes Complaint Center with as much information as possible.
Unfortunately, some people have already been conned.
A man in Maryland was falsely told he would save thousands of dollars if he paid for an entire year of his health insurance policy upfront. He was told the plan he picked included his current medical providers and would only charge him a $20 co-pay per doctor’s visit and a $50 co-pay per urgent care visit.
However, after he underwent emergency surgery, he learned that his plan did not cover the cost. He was stuck with a $7,000 bill.
In Washington state, a company conducting business under multiple business names misrepresented its medical plan coverage and left people to pay thousands of dollars out of pocket for services they had been led to believe would have been included.
The state of Washington issued a cease-and-desist order against the company, but only after receiving over 100 complaints from people who had been scammed.
So stay vigilant — this isn’t the only scam going around.
