Fraud has increasing become an issue of concern for most people, but they usually think of credit card fraud or identity fraud and few people realize the growing problem with health insurance fraud. Sadly, you have to be on the lookout for fraud whenever you deal with giving people your personal information, like buying health insurance in Texas over the internet. It is vital that you use common sense whenever you make a purchase online and especially one that involves divulging a lot of personal information.
It is all too easy for anybody to set up a reputable looking insurance website on the internet and con you into giving them your personal information and your money. If you are shopping online for health insurance in Texas, you must keep this in mind and keep your wits about you. Remember the old adage that says, “if it sounds too good to be true, it probably is” and this is true with health insurance as well.
So how can you recognize a fraud when it comes to buying health insurance in Texas over the internet? There are several health insurance related scams being peddled on the internet these days. One of these is the age old “pyramid” scheme. This deal claims to be health insurance, but then advertises that you can make money by getting more people to sign up under you. While the basic idea may sound like a bona fide network marketing business, beware the telltale signs of the “pyramid scheme”. In a scam like this, if you read the fine print you will realize that you aren’t actually getting anything for your money, other than a “membership” and a chance to make money. It isn’t real health insurance. They may tell you that you will qualify for “discounts” on medical services, but you will be hard pressed to ever recoup any of your investment with these so-called discounts.
The only way to make your money back is to sell these same valueless memberships to other unsuspecting people. Health insurance in Texas is a big industry and there are plenty of unscrupulous people looking to take advantage of others in order to make a quick buck.
Another popular scam leads you to believe you are purchasing a regular health insurance plan in Texas. They advertise the lowest rates around and draw you in with false promises. As soon as you try to submit a claim you find out that you don’t have any insurance at all.
Some of these internet health insurance scams in Texas even target the health insurance agents and companies themselves. It can be difficult to know who to trust anymore when it comes to buying health insurance in Texas, especially online, but with a little careful investigation you should be able to tell the real deal from the scams out there.
Another one of the major frauds regarding health insurance in Texas is when unlicensed agents attempt to sell you health insurance. The laws in Texas require both the insurance company and the agent to be licensed in order to sell you health insurance. This protects the consumer and makes sure that an agent knows what they are doing before they sell a product like health insurance in Texas that has a huge impact on a person’s life and well-being. If you find suspicious activity that may be fraudulent, you should report it to the better business bureau and any other local or state agency that deals with fraud.