On April 30, the Federal Bureau of Investigation (FBI) released a Public Service Announcement warning consumers about fraudulent discount medical scams. These scams typically involve deceptive offers for health insurance plans that, in reality, provide little to no legitimate coverage. Scammers are contacting people through text messages, phone calls, or emails falsely claiming to represent well-known insurance providers, or using high-pressure tactics to convince individuals to sign up quickly for a so-called “limited-time” discounted rate.
Victims across the country have already lost thousands of dollars to these scams. In Washington, regulators took action and issued a cease-and-desist order against a discount medical company, called Quick Health, after more than 100 complaints were filed with the Office of the Insurance Commissioner (OIC). The company misrepresented their coverage options, which led to customers paying out of pocket in full for medical costs they believed were fully or partially covered. Quick Health also failed to refund customers for canceled health plans and made unauthorized charges to their bank accounts. The OIC fined the company $100,000 for its deceptive practices.
In Pennsylvania, a couple was pressured to enroll in a discount medical plan from Quick Health, believing it was backed by a reputable national provider. However, after an emergency room visit and an appointment with their primary care physician, the couple was shocked to learn that the plan covered none of their medical expenses. Similarly, a Maryland resident who paid an entire year upfront for his discounted plan was left with a $7,000 bill after undergoing emergency surgery – costs that were supposed to be covered by the plan he purchased.
Stories like this have taken place all over the U.S. and demonstrates how convincing and damaging these scams can be. The FBI urged individuals to exercise caution when approached with unsolicited offers for medical insurance, especially those that advertise deeply discounted rates or require immediate payment.
