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Insurance Scam Alert

It is not surprising that when a new law is issued that requires that 38 million people to obtain health insurance, that someone is going to jump in right away and start selling insurance coverage to these individuals.  The problem is that the first one in is usually the scam artist trying to take advantage of the confusion surrounding the new requirements and the vulnerability of certain segments of our population.  Recognizing that the insurance scams have already started, Health and Human Services Secretary Kathleen Sebelius sent letters to the state Attorney Generals and Insurance Commissioners on April 6, 2010 warning them of the practices.

The state officials have been asked to be on the lookout for these fraudulent door-to-door insurance sales people and 1-800 schemes.  The state officials are to send bulletins to their state population warning them of these practices.  A sudden requirement to cover 38 million Americans is certainly exciting to the insurance industry and those plans that are not above-board will certainly try to maximize their sales.  Before handing over a check to cover the premium payment for your new health insurance plan, please be sure to check out your state Department of Insurance website or call your Insurance Commissioner to verify the validity of the plan.

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