The ever rising number of consumers signing up for health insurance plans has resulted in a rise in the number of scam medical insurance providers. These medical insurance providers often target people who have recently retired and seniors who are unable to arrange better rates with legitimate health insurers. Read on to discover 3 ways in which your health insurance company may try to scam you.

1. Failure to pay claims

Usually fraudrulent medical insurance agents try to sign up a huge number of people quickly by making them very lucrative offers. These insurance providers are themselves paying small premium amounts and settle small medical claims however, if there is a sizeable claim arises or regulators catch them, these companies simply vanish as if they had never existed.

So, just beware if you are getting delayed payments or if your insurer is offering poor excuses for failing to make the payments. If you have one of these illegal plans you may also be liable for the medical bills of your employees as well if you have taken out a plan as a small business employer.

2. Selling medical plans which are not licensed

If the insurance company does not have a license from the State Insurance Commissioner then you could find yourself in difficulty. In this case your service provider is almost certainly scamming you by offering non-licensed health plans.

You also need to know that agents are not allowed to provide union or ERISA plans, both of which are governed by federal law. So, if your insurance agent tries to dupe you by selling you an union or ERISA plan you should report this to your state insurance department.

3. Selling unusual coverage at low rates

If you are offered exceptional cover regardless of your health condition and at a lower rate than you would expect from other insurers then you should be very cautious. Do not get taken in by a seemingly too attractive offer as you are very likely to find yourself being taken for a ride. The scammers aim to collect large sums of money as quickly as possible and so they try to sell as many plans as they can as quickly as possible before disappearing.

Naturally these are simply some of the numerous tricks that the fraudsters use but in the majority of cases the presence of one or more of these things should cause you to stop and take a close look at exactly what you are getting.