WASHINGTON D.C. – The Federal Bureau of Investigation (FBI) has warned nationwide about a growing scam targeting individuals seeking affordable health insurance. According to the agency, these fraudulent schemes involve misleading offers for medical insurance plans promising reduced rates but ultimately failing to provide coverage, costing Americans millions of dollars annually.
The scams typically begin with unsolicited contact through phone calls, text messages, or emails from unknown entities offering enticing deals on medical insurance. Scammers often exploit the desire for lower healthcare costs by impersonating legitimate insurance providers, employing high-pressure tactics to encourage immediate sign-ups, and promising limited-time special rates or complimentary services.
Victims who enroll in these sham plans often find that the purported insurance company either vanishes or fails to provide actual coverage when medical needs arise, leaving individuals responsible for significant out-of-pocket expenses.
The FBI highlighted several examples of the scam occurring across the United States:
- In Washington state, a discount medical insurance company faced a cease-and-desist order after receiving over 100 complaints of fraudulent practices. The company allegedly misrepresented coverage options, leaving customers to pay for procedures themselves and facing difficulties in obtaining refunds.
- In Pennsylvania, a couple who believed they had signed up with a national provider discovered they had no coverage after an emergency room visit and were liable for all medical bills. Another Pennsylvania resident was promised cheaper coverage and a refund on their existing plan but received neither.
- In Texas, an individual responded to an advertisement offering assistance for gasoline and groceries to seniors. They were required to enroll in a specific dental plan to receive the aid, which never materialized, and the individual had to cancel their credit card to stop the charges.
The FBI advises the public to take the following precautions to protect themselves from these scams:
- Verify the source: Ensure any medical plan offer comes from a reputable and licensed company authorized to operate in your state. Contact your state insurance commissioner or the Better Business Bureau to verify the legitimacy of a plan.
- Check with providers: Confirm with your current healthcare providers that they accept the insurance plan you are considering.
- Review policy documents: Be wary if no policy documents are provided. If you do receive them, scrutinize them carefully, paying close attention to the fine print to understand the exact coverage being offered before committing.
- Avoid upfront payments: Exercise caution if a company demands large upfront payments or pressures you to make hasty decisions.
- Conduct independent research: If an insurance plan appears too good to be true, it likely is. Investigate thoroughly before enrolling.
The FBI urges anyone who believes they may have been a victim of this type of scam to file a report with their local law enforcement agency and the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov.
