How To Avoid Bogus Online Health Insurance Coverage?
Internet is a great place to explore options for an insurance cover. However, what you might discover can make you feel seriously sick. You will find truckloads of advertisement and websites formulated to attract people like magnets. Clever language, quick enrollment, extremely low cost and several other factors can entice you to plunge into the offer.
Here is what you will usually encounter with an online policy. The form will require you to enter your contact information. You can expect a quick call after filling up your contact information.
Most of the scam companies will start off by offering huge discount on their services. If you happen to ask them to send their details in writing or by email, they will state that this information is passed on only when a person enrolls with them. A perfect trap laid for the victims to fall prey!
The worst part is that they will ask you to make an upfront payment, before you get a clear idea about the policy, just after the health insurance quotes process. Their plan is to scam desperate people who are dumb enough to shave off $100 or more to obtain a discounted health cover.
In some cases, you will be able to find details pertaining to the policy on their website itself. However, one needs to be patient enough and read the fine prints to uncover the hidden trap. Most of the bogus companies will require you to pay for all the medical expenses upfront, unlike real health insurance companies which require you to make a co-payment. The bogus companies will claim that they will make the reimbursement later.
Also, some companies will offer great discounts if you avail services from a provider in a particular network. The first question that should arise in your mind is whether these network includes good physicians. Harvest some time and try to obtain the list of actual physicians in your state. You will be taken aback when you discover that none of these names matched with the names provided by the list of providers offered by the phony insurance company.
Also, the premium amount should help you gauge the credibility of the company. If you are offered all kinds of health coverage at a dirt cheap price, then you need to be smart enough to realize that something is seriously fishy.
Another alarming fact with some networks which operate such scam offer is that they will pass your contact information around, and then you will start receiving calls from insurance companies for which you didn't even apply.
The year 2004 saw the Federal investigation in action. They dismissed the license of bogus companies, which left more than 200,000 policyholders left with no policy, despite having spent money towards the premium. The General Accounting Office uncovered the fact that there were more than 144 companies selling health insurance policies although they did not have the license to sell them, leaving behind more than 100,000 victims and $85 million worth of unpaid medical bills.
Despite the big catch, the government authorities are yet to take any drastic steps to prevent such instances. The phony companies use variety of misleading means in the false hope of getting you a health insurance coverage.