Columbia (WLTX) -- With the state's unemployment rate now above twelve percent, those who are without a job are also without medical coverage, making them open to schemers offering medical plans.
Maria Audas works with Consumer Affairs as the Public Information Coordinator.
"Consumers end up paying hundreds of dollars up front for what is is very much needed health care coverage, and in the end they are left without their money and then without coverage either," she explained.
For months, the Department of Consumer Affairs has been fielding phone calls from scam victims. In some cases, the seller does not give the cover they promise, or they provide no coverage at all.
"They will promote it saying it's all-inclusive: vision, dental, clinics, hospitals, the whole work. And they basically bill it as an insurance, an insurance policy. But it's not a policy. And in a lot of cases, it's not even legitimate because the doctors they say are in their network have no knowledge of the company ever existing."
Audas says it's important to do your homework. Understand the difference between a health insurance policy and a discount plan.
"If they are signing up for discount plans, it's just that. It's a discount. It's not healthcare coverage. But in the case of these scams, they're not even a discount, you pay money up front."
There are red flags.
"If they are asking for hundreds of dollars up front, be suspicious, be very suspicious. And actually the number one clue is that the doctors that they say are in their network actually know about the company. And you should be provided a list of the doctors in the network before you pay money."
Demand a list of doctors from the insurance provider. Take time to contact the doctors on the list. If the doctors don't know about the company offering you coverage, you know it's a scam.
"These are industries we are familiar with, we are in communication with the guys that are doing it right. And so if you get someone that's out to steal your money, we're going to know about it," she said.
If you receive the offer via popup or fax, if coverage is guaranteed before you apply, or a general percentage discount is given, those are also red flags.
Most importantly, Audas claims, while you may feel pressured to find medical coverage and find it fast, take the time to do the extra homework. Don't give away money or your personal information without knowing it's legitimate.
"This is a huge issue that you don't want to rush decision making on. You don't want to make a quick decision and then end up losing out."
For more information, contact the Public Information Division at 803.734.4190 or 1-800-922-1594 or http://www.scconsumer.gov
7/8/2009 7:16:49 PM
