Fraud Against Seniors
Don't Fall Prey to Insurance Fraud
Among seniors, there are two general types of insurance fraud. The first can occur when someone tries to sell you life or health insurance that seems too good to be true. The second is when someone tries to take advantage of you by charging Medicare for more services than you received. Here's how you can fight insurance fraud.
If you are thinking of buying life or health insurance, take your time. Be sure to compare benefits and prices before buying insurance. Talk to your friends or family, or a trusted accountant, attorney, or financial adviser. Be especially wary of a salesperson or telephone caller who:
- Contacts you unsolicited. The salesperson has probably obtained your information through a mailing list. Not all agents who contact you are dishonest, but it’s a good idea to be cautious.
- Uses high-pressure tactics. Common tactics include offering a “last chance deal” or appealing to your sympathy or emotions or attempts to pressure you to sign forms without reviewing them with you carefully so that you fully understand them. Also, any decision to buy insurance should be made rationally and be based on a sound assessment of your financial needs.
- Urges you to cash in an existing annuity or life insurance policy to buy a new annuity, life insurance policy, or other investment. Generally, annuities and life insurance are worth more the longer you keep them. Changing to a new annuity or policy may cause you to lose money over the first three to five years.
- Claims to be from Medicare, Social Security, or another government agency. The government does not sell insurance. An agent or broker who claims to be associated with the government is breaking the law.
- Wants to sell you a package policy that includes several different benefits, some of which duplicate a policy you already have or include coverage you do not need.
- Wants you to give cash or make your check/money order payable to him.
- Wants you to sign forms that are not completed, contain false or incomplete information or are blank.
Check your medical bills. If you receive a bill for services you did not receive or its costs exceed what you were told, contact the Maryland Senior Medicare Patrol at the Maryland Department of Aging at 800-243-3425 or 410-767-1100 or www.mdoa.state.md.us.
For more unbiased information on all types of insurance products, see the Maryland Insurance Administration on-line at ww.mdinsurance.state.md.us, or by contacting us at 410-468-2000 or 1-800-492-6116 for a list of brochures.