Unfortunately, insurance fraud is a real threat. Scammers target Medicare beneficiaries, ACA shoppers, and life insurance buyers. Here's what to watch for.
Medicare Scams
- Unsolicited calls offering "free" Medicare benefits: Medicare will never call you unsolicited. If someone calls claiming to be from Medicare and asks for personal information, hang up.
- "New Medicare card" scams: Scammers claim you need a new Medicare card and ask for your personal information to "process" it.
- Genetic testing scams: Offers for "free" genetic testing that result in fraudulent Medicare billing.
Health Insurance Scams
- Fake health plans: Plans that look like real insurance but aren't regulated and may not pay claims. Always verify a plan is ACA-compliant or from a state-licensed insurer.
- Health sharing ministries misrepresented as insurance: Some are legitimate; others make promises they can't keep. Research thoroughly.
Life Insurance Scams
- Unlicensed agents: Always verify an agent's license through your state's Department of Insurance.
- Churning: An agent convinces you to replace existing policies unnecessarily to earn new commissions.
How to Protect Yourself
- Never give personal information to unsolicited callers
- Verify agent licenses through your state's Department of Insurance
- Research any company or plan before enrolling
- If a deal sounds too good to be true, it probably is