Posted
by Lauren Gores
on Wed Mar 10, 2010
Last updated
Mar 10, 2010
Bogus health insurance companies are costing people tens of thousands of dollars, and now the state's tracking down the culprits.
The Department of Insurance ordered 13 companies and 12 individuals to make their case against accusations they have ripped off consumers Wednesday. None of them showed up, and that could result in legal action against the companies.
The state's received almost 150 complaints from people saying they have fallen victim to insurance fraud. ABC 17 News contacted some of them—who said they are angry, frustrated, and wants the companies shut down.
Bogus health care plans lure consumers through faxes, email, and late-night advertisements. They sell the plan to customers through lines including, "Control your Health Care Costs," and "Just $99 a Month." However, instead of getting the most for your dollar, you may become victim of a fake insurance plan—something the state said is a growing trend.
"We're seeing it quite a bit and it has gotten worse over the last couple of years and we think it will keep getting worse because people are having a hard time getting health insurance," said Travis Ford, of the Department of Insurance.
Theresa Hurley, of Warrenton, MO, fell for the scam in 2007. Hurley heard about a cheap plan via fax and signed up. However, when she realized her claims were not being paid, she knew the "too-good-to-be-true plan," was just that.
"I was upset, because I thought, well, now what?" said Hurley. "Especially since they took the money out and it wasn't covered. Someone should have let me know I was really canceled and they never did.
Rebecca Edington, of Festus, MO shared a similar story.
"I was mad." Said Edington. "I felt like they were stealing my money, and they lied to me, and took money they didn't deserve.
ABC 17 News tried to contact some of the companies, but was directed to disconnected lines.
"It's very hard to track them down," said Ford. "A lot of them are shady organizations. They very well may be operating out of someone's basement or out of someone's house."
Because none of the companies showed up, state officials said they could issue cease and desist orders, and/or fees. However, when those decisions will be made is still unclear.
If you suspect you've fallen victim to insurance fraud, the Dept. of Insurance says to call 1-800-726-7390.
