By appealing to consumers’ insurance cost concerns, these individuals successfully entice more than 100,000 Americans into purchasing sham health insurance every year.

Consumers should always be on the lookout for common insurance scams. Some warning signs of fraudulent plans include:

* dramatically low premiums;

* guaranteed coverage – regardless of pre-existing conditions;

* lack of the word “insurance” anywhere in the materials;

* plans that ask for premium payments in cash or for an entire year up-front.

It is important to evaluate the agent selling the plan. Agents who claim that they do not need a license to sell insurance or imply that their product is exempt from state regulation should be rejected. Consumers should be wary of any agent claiming to represent a medical provider who solicits customers door-to-door or patrols neighborhoods encouraging residents to visit a mobile clinic for routine checkups or tests.

Many organizations, including the National Association of Health Underwriters, are educating their members and consumers about how to recognize insurance scams and protect against them.

To keep from being victimized, consumers need to do their research and use a reputable insurance agent or broker who is knowledgeable about scam insurance. Consumers can locate a local NAHU member to help them find the right health insurance plan by going to www.nahu.org and using the “Find an Agent” feature.

Suspected insurance scams should be reported as soon as possible. Most states sponsor fraud bureaus that investigate insurance scams, and some even reward whistleblowers if there is a conviction.

The financial effects of these schemes are felt throughout the entire health care industry. Victims of insurance fraud will have to repay uncovered medical bills and depending on how long they go without legitimate insurance coverage, may also lose health care insurance access permanently. Health care facilities and medical professionals, meanwhile, may never be paid for the treatments they administer.

The only way to stop the spread of insurance scams is to learn how to detect fraud and work to prevent such criminals from succeeding.

Health insurance is vital to one and all. As rising medical expenses is driving more and more people to opt for health insurance, there are several people who unknowingly fall prey to scams of health insurance. They get lured by the unbelievably low premiums charged by these unauthorized insurance companies. These people who fall prey do not realize that there are many fake companies just trying to squeeze out money from their innocent victims. But, with so many insurance providers how do you know the real ones from the fakes? The number of companies running scams has been on the increase as many people are now opting to get health insurance but looking to get the best out of it. So, how does one ensure that they are protecting themselves from these cheats and at the same time getting the best for their money?

While looking for health insurance, it is best to avoid companies that are providing insurance at unbelievably low prices that does not sound feasible in anyway. Many people try to check for the best deal while trying to get health insurance and end up with no insurance coverage in the event of an emergency as they have been the victim of a scam. You must know what to look out for while having a discussion with the insurance provider in order to differentiate between a fake and a real provider.

Being professionals, these fake companies will know how to cheat the gullible people without them suspecting even for a moment that they are being taken for a ride. They will carry paperwork and everything else that a real insurer will be bound to carry with them and will make it look like the real thing. The most common way in which these fake insurers will scam people is to sell something that is not an insurance plan and will usually be something like a discount program. The company will contact the people over the phone and is usually targeted at individuals who have problems in affording insurance or do not actually be eligible to take health insurance. Also, you should look out if the representative says that their plans are reinsured. Although many real insurance companies opt for reinsurance as a protection measure, this feature is never conveyed to the customers.

It is difficult for a common man to segregate the bad apples from the good ones. As people running scams are thorough professionals and follow the protocol of the real ones, it becomes increasingly difficult to spot a scam from a real one. So, be aware of everything about health insurance in order to avoid becoming the victim of a scam. If someone reaches you over the telephone and tries to sell you some kind of health insurance that sounds too good to be true, try questioning the person in every manner possible to prevent becoming the victim to a scam. If you still doubt the person to be running a scam, ensure that you contact the state insurance regulators who are the authorities in the field of insurance to investigate these people and bring them to book if they are running a fake operation. This will not only protect you it will also ensure the safety of others who can fall prey to these smooth operators.