Fraudulent Health Plans and How to Send Them Packing
Fraud and deceit in the health insurance industry is not uncommon, but you can protect yourself by being smart about who you hire to provide coverage.
Let's start with fake associations. They exist, and they manage to collect premiums without paying out on benefits. People who get taken in by them are the ones who didn't research them before signing up. There are definite things to look for that will help you determine what's legitimate and what's not.
Researching With the Better Business Bureau
Ratings are important, and insurance companies have them just like hotels and restaurants. You'll want to look for the "AM Best Rating" and if you don't find one, look elsewhere.
If you are purchasing insurance through an agent, it's a simple matter to research them on the Internet and place a call to the Better Business Bureau to see if they're in good standing. If they're not, the BBB will tell you and you'll find their unhappy customers online.
Buyer Beware
NEVER sign a policy without first giving it a good review. Just like the old saying that "there's no free lunch," there is no such thing in the insurance industry either. If a company is offering you something spectacular in exchange for almost nothing, chances are you're not going to get anything. Be smart and keep in mind that you get what you pay for, and what you need is a fair deal. Solid, legitimate companies are out to make money while taking care of your needs. They won't scam you and disappear; they're with you for the long haul.
Along with the Better Business Bureau, you should check with the National Association of Insurance Commissioners to see if the company you're interested in is listed. Each company that's recognized by the NAIC will have a number assigned, and if there's no number and the NAIC hasn't heard of them, look elsewhere.
Protect yourself - a little research can go a long way and can save you a lot of frustration in the end. Unfortunately, fraudulent business practices are a fact of life, but you can help reduce the effects of fraudulent health plans by arming yourself with knowledge.