A Tip from the Marin County District Attorney's Office About How to Guard Against Health Insurance Scams

You receive a phone message that, due to a United States Supreme Court decision to uphold the Affordable Health Care Act, you have an opportunity to get health care at substantial discounted rates.  You are given an 800 number to call for this new affordable health care plan. 

You call the number and the salesperson offers “superior” health insurance at “group” rates with savings of 50 percent or more. 

However, be aware of several scams that boast a special affinity to this federal act.

Many of these plans use official-sounding names and often are marketed through bogus associations or unions.  The cost savings, you are told, are because of the passage of this federal act and that these group plans are exempt from state oversight under the federal Employee Retirement Security Act (ERISA). 

In truth, the plans are sold without state licenses and lack state-required reserves to pay claims.  The owners of these illicit firms may pay some claims at first but later are dodging calls and policy claims from employers and other consumers alike.  Most if not all of the money paid as premiums has gone to pay for lavish lifestyles, homes, cars and other luxury items for company owners. 

Verify before you buy.  Check to make sure the insurance entity is licensed to do business in California and has the required reserves to pay claims when the coverage is needed.  Contact the California Department of Insurance at 1-800-927-4357.

More information is available through the Marin County district attorney's consumer protection unit at 473-6495 or through its web site at http://www.marincounty.org/da.