Beware of These Health Insurance Scams During Open Enrollment
Many Americans are currently in the process of making difficult decisions about their health insurance, in part because open enrollment is underway—the period when consumers can change their plans. This means scammers are actively contacting people, posing as insurance companies, in an attempt to collect personal, financial, and medical information.
Common Health Insurance Scams
Scammers are particularly fond of posing as Medicare representatives, making unexpected calls to seniors and others eligible for the federal program. As the Federal Trade Commission warns , scammers may already have some of your personal information and will ask you to verify your Medicare card, bank account, and/or credit card number under the guise of sending you a new Medicare card. In reality, Medicare cards are free and sent automatically, so you’ll never have to pay.
Scammers may also use similar tactics against consumers of Marketplace, Medicaid, and Children’s Health Insurance Program (CHIP) plans, claiming you may lose or be disqualified from health insurance if you don’t make a payment.
In addition to impersonating government officials, scammers pose as representatives of legitimate insurance companies, promising discounts on insurance plans (available only for a limited time) or assistance with enrollment (for a fee). Plans that seem too good to be true are likely not health insurance at all and may not provide the promised coverage. And you don’t have to pay anyone to enroll in an insurance plan.
Please note that while scammers may intensify their efforts during open enrollment, health insurance fraud can occur year-round. The Federal Communications Commission (FCC) is warning consumers about common scams, such as calls and text messages in which scammers, posing as government agencies or insurance companies, offer medical exams, free gifts, or other promotional benefits in exchange for your personal information.
It’s fairly easy for scammers to spoof phone numbers (to make it appear you’re receiving a call from a trusted insurance provider like Medicare or Blue Cross Blue Shield) and create phishing websites designed to steal your login credentials and financial information.
Red Flags of Insurance Fraud
As always, unsolicited communications that pressure you into taking action are almost always a scam. Medicare representatives will never call, email, or text you to verify information or demand payment, and government officials will not try to sell you anything or threaten you unless you pay. If anyone claims to represent an insurance company and asks for money or sensitive personal information, or threatens legal action, hang up.
Don’t give out any information, including your Social Security number, bank account number, or medical history, unless you contact Medicare or another authorized agency directly and need to verify your identity. (The Medicare phone number is 1-800-MEDICARE, and you can contact a Marketplace representativethrough HealthCare.gov .)
Always verify the representative’s identity using the official contact information listed on the .gov website, company page, or bank statement, and never send money via gift cards, prepaid debit cards, or cryptocurrency in exchange for anything. Also, ensure your insurance account credentials (e.g., HealthCare.gov and Medicare.gov ) are secure and reliable, and enable multi-factor authentication wherever possible.