Friday, January 18, 2008

Healthcare Consumer Warnings around buying Insurance

Buying healthcare insurance is scary. It’s even worse to know that there are unscrupulous companies out there that individuals need to be aware of. In fact, any time a company solicits healthcare insurance over the internet, consumers probably shouldn’t buy from them. There have been many consumer complaints about such companies, according to South Coast Today.

Insurance commissioner Nonnie Burnes had this to say about these kinds of corporations: "Somebody soliciting you by fax for something as complicated as insurance is something that should make you quite suspicious." Burnes ordered several unlicensed companies to cease advertising in Massachussetts.

Consumers should be especially wary about giving financial information over the internet or phone to these companies. Four such companies include New Jersey: Healthcare Alliance, National Alliance of Associations, Association Healthcare and Promotion Healthcare. None of the above companies were found to be licensed in the US. Burnes noted that Minnesota has also had problems with the same companies.

According to the state Division of Insurance, the companies in question distribute, via fax, advertisements for health insurance products at prices significantly below what comparable policies would cost from a licensed insurer. Consumers who contact these corporations are asked to provide credit card information or to fax a blank check. One policy promoted a $299 premium per month premium for a healthy couple.

Consumers with questions about health insurance solicitations should contact the Division of Consumer’s hot line at 617-521-7794.

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