Learn How to Buy the Best Health Insurance Coverage, and Avoid the Scams
When you are looking for the best health insurance coverage don't fall victim to a health insurance scam. There are several things one should be aware of to avoid being scammed when shopping for health insurance. Here are steps on how to buy health insurance and precautions to take so you don't get scammed.
First, make sure that you are dealing with an agent and a company who is licensed in your state. Do not assume that because someone is claiming to represent a well known health insurance company that they are licensed or that the company is licensed where you live. Not even every well known company is licensed in every state. A quick call to the insurance commission in your state will reveal the license status of an agent or a company. A person or company may hold or have held a state license but it may be suspended or revoked. There have been many reported cases of unlicensed agents and/or unlicensed companies selling policies, collecting premiums, and disappearing literally overnight.
Second, check out the track record of the company in question. Despite having an active license, a company may be getting many complaints regarding unpaid claims, excessive and/or frequent raising of premiums or getting people to sign policies with well hidden "underwriting at time of claim" clauses. The latter occurs when a company, which is supposed to underwrite or determine at time of application whether it is accepting or not accepting certain medical conditions or whether it is issuing a rider excluding the condition from the policy permanently or temporarily. This way the client knows from the start where they stand. The state of California recently filed a class action lawsuit against a well known company for deceiving clients by writing policies, which seem to accept conditions, only to leave the unsuspecting client with huge medical bills stating that the conditions were not covered because of an "underwriting at time of claim" clause. Such a clause, usually well hidden in the fine print, states that at the time of claim the company can now go back and check one's medical history and determine if they are going to pay the claim. For example, we just found out that you had high blood pressure a few months ago, "so we are not going to cover that heart attack you just had". Many of these policies are understandably sold for much lower amounts than properly underwritten ones and as such lure those who can't afford the latter. The clients are not asked in depth medical questions and are thereby further induced to take these extremely risky policies.
Third, be wary of so called medical discount plans. Although there are some, which perform a great service by providing significant reductions in medical bills to those who either can't afford traditional health insurance coverage or can't qualify because of their medical history, there are many which do not have the necessary contracts in place with enough medical providers to enable the discounts they promise.
Take the time to learn how to buy health insurance so you don't fall victim to a health insurance scam. Everyone wants the best health insurance coverage possible and there many honest and reputable insurance providers. Due diligence is a must when shopping for health insurance coverage. Insurance Care Direct has extensive experience in health insurance industry, and strives to provide the best health insurance coverage for our client's at the most competitive rates.