The ink is barely dry on the new federal health insurance law, but scam artists already are using it to peddle phony health policies, the Better Business Bureau (BBB) warns.
U.S. Health and Human Services Secretary Kathleen Sebelius recently notified state attorneys general and insurance commissioners that scammers were knocking on doors to sell phony policies, claiming there is a limited enrollment period and urging consumers to buy quickly. However, it will be four years before expanded coverage is available, and it’s very unlikely that it then would be sold door-to-door.
“These types of scams often crop up when there is news of a big change in government policy, whether it’s health insurance or tax credits,” said Jim Hegarty, BBB president and CEO. “It is despicable to prey on the fears of people by threatening them with a fictitious deadline or implying that they may be required to sign up for something.”
“Scams based on current events are nothing new,” Hegarty said. He advises consumers to verify that insurance agents are licensed to do business in their state through the insurance department websites at www.insurance.ne.gov, www.insurance.sd.gov or www.insurance.ia.gov.
BBB has tips for consumers who are approached by door-to-door salespeople:
- High-pressure tactics are often a part of fraudulent door-to-door sales and solicitations. Don’t let yourself be hurried, intimidated or coerced.
- If you are interested in buying from a door-to-door seller, get everything in writing, including price, warranty and all conditions. Tell the salesperson you will check over the information and get back to him or her.
- Always ask for proper identification before listening to the pitch.
- Never let a stranger inside your home.
- If you feel threatened, call the police.
If you have concerns about salespeople who are knocking on your door, calling you on the phone, or sending you e-mail, contact the BBB at 800-649-6814 or www.bbb.org for a Reliability Report on the company.
The Better Business Bureau,Inc.(BBB)has been serving the region for more than 70 years and is a private, nonprofit organization dedicated to promoting trust between consumers and the business community. Accountability, education and recognition are key components to the BBB's mission of fostering trust in the marketplace. Today, the BBB has a membership of approximately 7,400 companies in Nebraska, South Dakota and southwest Iowa. Consumers are encouraged to report complaints and possible scams to the BBB. The BBB annually honors organizations and companies that demonstrate exceptional business ethics with the prestigious Integrity Award. As a matter of policy, the BBB does not endorse any product, service or company. For more information, please visit www.bbb.org and “Start With Trust.”