KPLU Local News
(2010-03-22)
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The state's insurance commissioner says more people have become victims of shady companies since the recession began.
Victims are often drawn towards ads that promise relief from the distress of being uninsured.
The ads come through fax machines, emails, a friendly voice over the phone. Some of them, like the American Trade Association, has glossy videos with comforting words like "real" health insurance and "peace of mind."
Regulators say the most alluring thing about the coverage, though, is the price. The American Trade Association's video touts a price of less than $200 a month.
Rich Roesler, spokesman for the Washington Insurance Commissioner, says anything that looks too good to be true, probably is.
"The painful reality today in that health insurance coverage in United States is expensive," he says. "If a company is offering unreasonably low costs beware."
Roesler says some companies that offer such low prices don't have any money to cover claims - leaving consumers who thought they were covered with big debts. Other companies might not have registered in Washington, so there's no way of regulating their rates and policies.
He says most victims are between 50 and 65-years-old -- just before medicare kicks in, and after insurance companies consider you "higher risk."
Roesler thinks the scams could die down when the economy improves and more employers can offer coverage.
For more information:
Contact the Washington Insurance Commissioner
1 (800) 562-6900
or visit their website
Tactics often used by questionable companies (list courtesy of Washington Insurance Commissioner):
-Unreasonably low costs
-Unusual marketing, such as an unsolicited phone call, fax message or e-mail message.
-High-pressure sales tactics, such as suggesting there's a special rate that expires unless you sign up immediately.
-Companies that want money up front before they'll send you information about their products.
-Easy acceptance. Be cautious about companies that promise coverage with little or no health screening or questionnaire.
-Companies that offer little contact or location information.
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