Signing up for health insurance can be tricky. There are a lot of confusing things that go into it. If you’re not careful, you could inadvertently give your information to a fraudster, allowing them to use your information for identity theft. Here are a few common scams to watch out for.
Common Health Insurance Scams
Fake Government Official
If someone trying to sell you insurance says they’re “from the government,” it’s almost guaranteed to be a scam. No government employee or official is going to try to sell you insurance, ever. They’re simply trying to sound more official. If you get a call from an insurance salesperson, they will almost always tell you what company they work for: health insurance companies are private organizations, not government-run.
Other “Federal” Scams
Often, scams will list their insurance as being covered under the Federal Employee Retirement Income Security Act, or ERISA. This is patently ridiculous: health insurance companies are licensed by the states, not the federal government. If you encounter a salesperson or website claiming to have “federally-backed” insurance of any kind, they’re flat-out lying and likely scammers.
Fear of Missing Out
Sales pitches that are very high-pressure and encourage you to “buy now” to “lock in” a great price are almost always scams. Normal health insurance companies aren’t trying to get you to buy in with a knee-jerk reaction to a sales pitch: instead, they’re trying to convince you they offer better coverage. Typically, health insurance costs don’t change based on when you sign up for the policy.
Another common fake is a health insurance sales pitch telling you to join a union or organization in order to get coverage. These are often fake organizations, set up just to to make you think you’re getting group health insurance. In actuality, these groups are often just shells that look vaguely official in order to scam you out of your information.