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Step 1
Be wary of a health insurance provider that promises you the moon. They may offer you an extremely low rate that beats all others, but want you to pay a whole year up front, fork over the premium in cash, sign immediately or sign a blank form. These should be red flags that it may be a sham company ready to take your money and run.
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Step 2
Check out any prospective health insurance company carefully. Contact your state department of insurance to see if the company holds a license in the state, and whether there have been any complaints against the company.
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Step 3
Trust your instincts, and only do business with those whose reputation is proven. Ask for references, and call them.
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Step 4
Note that some scam insurance companies closely resemble other trusted companies by design. Their letterhead and marketing materials may resemble a reputable company that is closely aligned with the government.
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Step 1
Compare your medical bills from the doctor and the explanation of benefits from your insurer. Do you fully understand how your claims were processed and paid? If there is a discrepancy, ask questions.
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Step 2
Look for the following red flags: a charge that seems unusually high for a service that was performed, a charge of a more extensive level of service than you received, double billing or miscoding. While mistakes can happen, it can also be a case of fraud or abuse.
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Step 3
Report any suspicions to the insurance company's fraud department. For questionable practices involving Medicare providers, contact the Office of the Inspector General by calling the OIG Hotline at 1-800-368-5779.
