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June 18, 2025

Afordable Care Act Creates Opportunities for Health Insurance Scams

Afordable Care Act Creates Opportunities for Health Insurance Scams

by Eric Smith / Wednesday, 14 August 2013 / Published in Affordable Care Act

Limited Coverage health insurance plans have been around for a long time. According to a recent article by Kate Pickert in Time Magazine experts warn that the debut of the health care exchanges could create a prime moneymaking opportunity for these questionable products as well other, more illegal scammers.

There are two main types of potential snares for consumers: outright cons and insurance-like plans that give the impression of offering more coverage than they actually provide. Regulatory agencies are already on high alert for fraud. Both the Federal Trade Commission and the Better Business Bureau have posted warnings about Obamacare-related identity theft.

Some quasi-insurance products expected to proliferate come October are “discount medical plans,” which promise lower health care costs in exchange for a recurring fee. Many of these plans lure customers with language that implies comprehensive coverage, but the reality is far more limited.

Obamacare bans some forms of skimpy coverage, but with enforcement left to the states–some of which are less than enthusiastic about the law–don’t count on those misleading plans disappearing overnight. And, for those states not enforcing the Affordable Car Act at all?”

Let the buyer beware.

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Tagged under: 2013, Affordable Care Act

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