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New law brings health insurance scams

Posted On Wed, April 7, 2010

It seems like consumers must be constantly on the lookout for some sort of fraud and the passage of the healthcare reform bill has added another worry to the list.

Scam artists are using the new healthcare law to sell fraudulent insurance policies to consumers. Health and Human Services Secretary, Kathleen Sebelius, warned state officials on Tuesday about the increasing number of scams involving fake health insurance policies.

In a letter to state insurance commissioners and attorneys general, Sebelius wrote that "unfortunately, scam artists and criminals may be using the passage of these historic reforms as an opportunity to confuse and defraud the public." The Atlanta Journal-Constitution reports that federal investigators are doing their part to identify the scam artists.

Consumers should be aware that some scam artists are approaching homes telling people there is a limited open-enrollment period, enticing them to buy health insurance immediately, the Journal-Constitution reports. It also says the probability of federal officials using these door-to-door tactics is low.

There are currently 32 million uninsured Americans. It is expected new health care law will be in full effect by 2014.
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