Health insurance scams leave thousands with large medical debts and no coverage

New York City, August 28, 2003--A recent unprecedented increase in unauthorized and illegal health insurance plans, spurred by rising health care costs and increasing numbers of uninsured, has left approximately 100,000 people with millions of dollars in medical debts and no coverage, according to a new report from The Commonwealth Fund. Companies selling phony insurance collect premiums from enrollees but fail to pay health care providers. With no safety net, such as a state guaranty fund, to pay medical claims when these plans become insolvent, victims are often left with huge medical debts.

"These scams prey on people who are seeking access to affordable health insurance coverage," said Karen Davis, president of The Commonwealth Fund. "Not only do we need better methods to identify and shut down illegal operations, we need to expand access to affordable coverage and reduce the demand that phony plans are exploiting."

Every state has laws making it illegal to operate an insurance company without a license. Unlicensed plans ignore state and federal insurance regulations, including solvency standards that ensure a company will be able to pay the claims of enrolled individuals.

In their report, Health Insurance Scams: How Government Is Responding and What Further Steps Are Needed, Mila Kofman, Kevin Lucia, and Eliza Bangit of Georgetown University's Health Policy Institute note that health insurance scams have been rising over the past two years as insurance premiums have increased at double-digit rates. Among their findings:

  • Since 2001, four unauthorized plans have left nearly 100,000 people with approximately $85 million in unpaid medical debts and without health coverage.
  • While no state is immune to the problem of unauthorized plans, some have been especially hard hit. In Florida nearly 30,000 victims of scams have been left uninsured and burdened with unpaid medical bills. The Texas Insurance Department has in the last

Contact: Mary Mahon
Commonwealth Fund

Page: 1 2

Related medicine news :

1. Mailman School of Public Health receives Manhattan Tobacco Cessation Center grant
2. Liverpool to lead 20M Department of Health initiative to develop medicines for children
3. Health care report cards may increase racial/ethnic disparities in bypass operations
4. 2005 Behavioral Sciences & Health Services Research Award
5. Statement on the findings of the Womens Health Study
6. Bone density returns when teens stop using Depo Provera, Group Health study finds
7. Mailman School of Public Health researchers develop infectious disease diagnostic tool
8. Health initiatives can help peace building in the Middle East
9. Study naming hospitals in top 5% for clinical quality released by HealthGrades
10. RelayHealth selected by Columbia University to link doctors and patients online
11. Health report-card fears make doctors forgo potential life-saving heart treatment

Post Your Comments:

(Date:11/25/2015)... (PRWEB) , ... November 25, 2015 , ... ... ) has focused on providing comprehensive solutions involving adult stem cell therapies to ... has officially deemed the “Regenestem” name as a Registered Trademark (RTM). , Organizations ...
(Date:11/25/2015)... ... November 25, 2015 , ... Bunion Bootie , ... early celebration of the early holiday shopping season. Starting Wednesday November 25th, Bunion ... ea). Black Friday promotional pricing is in addition to any automatic discounts applied ...
(Date:11/24/2015)... (PRWEB) , ... November 24, 2015 , ... ... certified to offer their patients the many benefits of the revolutionary BIOLASE WaterLase ... sharp cutting and scraping tools traditionally used by a dentist in Gettysburg, ...
(Date:11/24/2015)... (PRWEB) , ... November 24, 2015 , ... New patients ... without a referral for dental implants at her Mississauga, ON practice. Dr. ... experienced in the placement of dental implants. , Missing teeth can lead to ...
(Date:11/24/2015)... Texas (PRWEB) , ... November 24, 2015 , ... Charitable ... all charitable donations are made in the last five weeks of the year totalling ... was created in 2012 to connect the nation’s charities with those individuals who want ...
Breaking Medicine News(10 mins):
(Date:11/24/2015)... and BERN, Switzerland , ... the ARTORG Center for Biomedical Engineering Research of the ... the Division of Endocrinology, Diabetes and Clinical Nutrition of ... the start of an exclusive collaboration to develop a ... algorithm for the personalised delivery of insulin for diabetic ...
(Date:11/24/2015)... st  Scientific Assembly and Annual Meeting of the Radiological ... in Chicago on Nov-29 th through ... st  Scientific Assembly and Annual Meeting of the Radiological Society of ... Chicago on Nov-29 th through Dec-4 th ... will present its revolutionary whole body CZT digital SPECT/CT solution at ...
(Date:11/24/2015)... The uptake of recently approved and pipeline premium products for Type 1 ... 2021, says GBI Research . --> ... Diabetes Mellitus (T1DM), will be a key driver of market growth to ... The uptake of recently approved and pipeline premium products for Type ... to 2021, says GBI Research . ...
Breaking Medicine Technology:
Cached News: