The prevalence of health insurance scams is an ugly truth which can be disastrous for you. It is apparent that fraudulent activity is rampant in the health insurance industry, especially with a lot of vulnerable consumers out there and ill-minded crooks ready to take advantage of them. Whether you are shopping for individual health insurance or for your family, there are several ways to spot a health insurance scam before making a purchase.

When for example your individual health insurance provider gives you a deal that is just too good to be true, then it most probably is. A health insurance scam will offer you a very low rate, perhaps the lowest one out there, but will require you to pay for annual fees upfront, fork it over in cash, and sign immediately on the form. These are all red flags pointing to a fraudulent health insurance company ready to run with your money. It is reactions such as relief and joy for having found such affordable rates for health plans that scam artists like to prey on. It is therefore crucial to remain realistic and rational by going through the valid channels for verifying the legitimacy of the insurance provider. Also, perform a background check on the prospective insurer. You can contact your state department to check if the company is licensed in the state, and if there have been complaints filed against them.

Another way to spot a potential health insurance scam is by looking into how competent and well-trained the insurance agents are. Legitimate companies invest on quality training for their representatives in order for them to adequately provide information about their products and services. Representative from fraudulent companies are not trained at all. They will seem confused when questions and clarifications are brought up. They will even avoid your questions as much as they can by relying on a brochure whose information they cannot elaborate on. The information on their website will appear sketchy as well or even misleading. Again, do some research and see what information you can find about the company. Read through forums where fellow consumers share their experiences.

Third, be wary of aggressive agents. If your agent seems to be pressuring you to make a decision immediately, take this as a red flag as well. Also be cautious about companies requesting for your bank information over the phone. A legitimate company will be more than willing to provide you with more information and the appropriate time to for you to make a decision.

In summary, only deal with licensed insurance agents employed by reputable companies that have been around for several years and has a good track record for quality and service.