Woodlawn, Maryland — A man from Maryland aimed to cut costs on health insurance but ended up facing a hefty $7,000 hospital bill, only to find out his insurance wasn’t accepted there.
Scammers often take advantage of those seeking affordable healthcare by promising comprehensive coverage at minimal costs.
Today’s Issue in Mallory
The FBI is alerting Maryland residents about health insurance fraud that has financially impacted many.
“People feel they need coverage, so they’re drawn in by enticing offers, cash giveaways, and so on, which can be quite misleading,” explained Keith Custer, an FBI special agent in Baltimore.
Unfortunately, these plans often leave patients with significant out-of-pocket expenses and can lead to bills that soar into the thousands.
“The fraudsters cash in quickly; they take as much money as they can get. We’ve seen cases where victims have paid $20,000 or even $30,000 for coverage in just one year,” Custer noted.
The Maryland Department of Insurance has pointed out the crucial distinction between discount plans and actual health insurance. While the former might offer reduced services for a membership fee, unlicensed companies selling illegal insurance contracts can provide no real coverage and can’t settle claims.
After more than 100 complaints, the FBI investigated one such company. Victims were left covering their own medical expenses, without any reimbursements.
One Maryland resident reportedly paid $5,000 upfront and found himself responsible for a $7,000 hospital bill following an accident.
Custer alerts that these telemarketers may often pose as insurance brokers.
Health insurance fraud typically begins with unsolicited calls, texts, or emails from unknown sources touting exclusive deals or discounts. It’s crucial to do thorough research and remain cautious if these entities demand large advance payments; check if they are licensed to operate in your area.
The Maryland Department of Insurance offers an online database where you can verify if a business is authorized. You can also call 1-800-492-6116, extension 2217, for assistance. They also provide consumer tips for navigating insurance options.
The FBI shared several guidelines to help avoid falling victim to this kind of fraud. These include:
- Always verify that healthcare plans come from trustworthy sources and that the company is licensed in your state. State insurance commissioners or better business departments can provide reliable information.
- Check if your current healthcare provider accepts the insurance plan you’re considering.
- If you don’t receive policy documents, consider it a red flag for potential fraud. If documents are provided, ensure you read through them carefully to understand the details before making any commitments.
- Avoid paying upfront; be cautious if the company pressures you for large deposits or quick decisions.
- If you suspect you’ve fallen victim to fraud, report it to the FBI’s Internet Crime Complaint Center at www.ic3.gov, providing as much information as possible about the company.
- For queries related to Medicare, you can visit www.medicare.gov or call 1-800-Medicare at 1-800-633-4227.
This story has been adapted from a journalist’s report, ensuring that all content is fair and accurate.
