prohibitive cost of healthcare insurance has increasingly spawned
schemes to offer products purporting to be insurance, some of which
are outright criminal frauds.
offers typically include a fairly common set of come-ons: Guaranteed
issue, guaranteed rates, no underwriting, choice of any doctor,
and monthly premiums at perhaps one half to one quarter of what
actual health insurance plans might quote.
are little more than discount cards or similar schemes for reduced
costs at various medical providers. Others may contain
absolute dollar limitations or other conditions which effectively
render them worthless for obtaining anything but the most basic
of medical services, excluding any hospitalizations, surgeries,
fraudulent operators organize around company names which mimic well-known
national insurance carriers. They have reportedly enrolled
groups and actually paid claims for awhile, to really set the hook.
They then collect premiums for months, and by the time employers
& employees begin to suspect, the game is over. This
type of situation is catastrophic on two counts: First, the premium
is lost and in many cases huge amounts of medical bills are owed.
Secondly, the group has now been without coverage, and may have
developed serious medical conditions which are now of record &
will make the obtaining of replacement insurance problematic.
you are offered a plan at half the cost of competing proposals,
resist the temptation to believe. Insurance companies MUST
accumulate enough money to pay the bills your providers send or
the bills simply don't get paid.