How to avoid an insurance scam

With more people purchasing health insurance on their own, there is a greater opportunity to be a victim of an insurance scam. Here are a few tips to protect yourself from scams.

• Make sure you are familiar with the company soliciting you. If you are not familiar with the company, do a little research.

• Never give your Social Security number, telephone number, credit card number or bank account number to anyone who calls you.

• Never send money in advance of receiving a service or item

• Ask questions including the name of the caller, where they are calling from, the business’s exact name, where it is headquartered, how long it has been in operation, and if it has a local office, address and phone number.

• Ask to have more information sent to you prior to making a decision.

• Never let yourself be bullied into a decision. If the caller is rude and pressures you, hang up.

It is important for consumers to be alert for telemarketing, mail and door-to-door scams. Remember, if something sounds too good to be true, it generally is. Take time to make decisions and research the company to make sure they are who they say they are.

Legitimate telemarketers have guidelines that they must follow according the Federal Trade Commission. They include:

• All calls must be placed between 8 am and 9 pm
• May not call again after they have been told not to call back.
• Explain promptly what they are selling.
• Need the customer’s written permission to access bank accounts.
• Provide accurate information while they are trying to sell something.
• Keep a list of people who do not want to be contacted again.
• Announce the total cost of the item or service being sold and any restrictions or conditions related to receiving the item or service.
• Point out that the sale is final or non-refundable before asking for credit card or bank account information.

If you find that you have been the victim of a scam, you can call the Pennsylvania Attorney General’s office at 717-787-3391.

Content provided by Geisinger Health Plan ~ 2008