The Federal Bureau of Investigation (FBI) has issued a nationwide warning regarding a widespread discounted medical insurance scam that has resulted in millions of dollars in losses for individuals each year. These misleading offers promise substantially reduced rates on legitimate medical insurance plans but fail to deliver actual health coverage, according to the FBI.
Scammers often target individuals seeking affordable healthcare options by employing deceptive tactics. These include falsely claiming to be legitimate medical providers, pressuring people to sign up quickly due to supposedly time-limited special rates, or promising free services with hidden fees to lure victims into signing up. The scams typically begin with unsolicited contact via calls, texts, or emails from unknown businesses offering ‘special deals’ or ‘discounted medical insurance.’
Several states have already reported these fraudulent schemes. In Washington, authorities issued a cease-and-desist order against a discount medical insurance company after receiving over 100 complaints of fraudulent practices. The company misrepresented their plan coverage options and failed to cover medical costs, leaving beneficiaries to pay out of pocket for expenses they believed would be covered. Victims were not refunded after cancelling their plans, and the company made unauthorized charges to their bank accounts while operating under multiple names.
Pennsylvania residents have also fallen victim to this scam. In one case, a couple was pressured into signing up for a discount medical insurance plan they believed was offered by a national provider. After an emergency room visit and doctor’s appointment, they discovered their policy did not provide coverage, leaving them responsible for all medical bills. Another Pennsylvania resident was contacted by someone claiming to be a healthcare representative who offered a cheaper plan. Despite being promised a refund for their existing plan upon enrollment in the new one, they never received any information or refund.
Similar incidents have occurred in Texas and Maryland. In Texas, a senior citizen responded to an advertisement offering assistance with gasoline and groceries but was required to sign up for a dental policy to receive the aid. Despite trying to cancel the dental insurance, they were unable to do so and had to cancel their credit card to stop the charges. In Maryland, a man was told he would save thousands by purchasing a new health insurance policy but later found that his new insurance was not accepted by his hospital, resulting in a $7,000 surgery bill.
To protect against these scams, the FBI advises consumers to:
- Verify that the medical plan is from a reputable source and that the company is licensed in their state.
- Check with current providers to ensure they accept the insurance plan being considered.
- Review policy documents carefully, paying close attention to the fine print.
- Be cautious of companies asking for large upfront payments or pressuring quick decisions.
- Conduct their own research and be wary of plans that seem too good to be true.
Victims are encouraged to report fraudulent activity to the FBI’s Internet Crimes Complaint Center, including details about the company or healthcare provider that sold them the fraudulent medical insurance.
