We got a call at the Houston BBB last week from a gentleman who had a scary experience shopping for health insurance. This gentleman, who I will call Mr. Smith, was very gracious in giving me permission to share his experience in the hopes that it may help others avoid a similar scam.
Mr. Smith began his search for health coverage by filling out an online quote request form from a major provider. Apparently this provider sold his information because he soon began getting calls daily from various insurance companies. I checked out the website of the provider and while they promise to not sell email addresses, they do not promise to sell any other information and that is perfectly legal.
Mr. Smith got a call from a company called Insurance Group USA who offered him a plan that would only cost him $129 a month through their “Congressional Health Insurance Program”. This sounded like a great deal to him and he provided Insurance Group USA with credit card information even though he told them he wanted to make his payments by check once coverage began.
Something about that conversation did not sit right with Mr. Smith and later that evening his suspicions overtook him. He had told Insurance Group USA that he had a pre-existing condition due to cancer and had been previously paying $400 monthly. That information apparently was of no concern to the provider so Mr. Smith decided to look up the “Congressional Health Insurance Program” online but found nothing. He and his wife decided to call their bank in the middle of the night and were informed that an entity outside of the country had already tried to access their account. Fortunately the Smiths were able to cancel their cards and put a hold on their accounts before any money was withdrawn.
It sounds like the Smiths dodged a bullet. Their suspicions seemed to be confirmed as the provider has not contacted them again in regards to payments or anything else for that matter.
I would like to applaud the Smiths for following up on their suspicions. The deal sounded too good to be true and so they started to do research on their own. It is always advisable to research these companies on the internet. I recommend using the local and national BBB websites, the FTC website and doing a general search on your favorite search engine. It is also advisable to make the appropriate phone calls.
I did some research of my own and found some interesting information. From the website of a company called “Insurance Group USA, LLC” I found this disclaimer on the homepage:
http://www.insurancegroupusa.com/insurancegroupusa/index.jsp
IMPORTANT ANNOUNCEMENT
August 25, 2009
It has come to our attention that an insurance agency in Florida is selling a health / medical discount policy on a mass marketing basis.
The agency name is INSURANCE GROUP USA, INC. This IS NOT our agency and we have no affiliation with them. Our agency name is Insurance Group USA, LLC. We have received numerous emails and phone calls of complaint about the insurance/discount program they offer. We pursued talking with them about the complaints and they refused to even listen.
We have reported the complaints to the Florida Dept. of Insurance Fraud Division. They indicated to us that anyone who has purchased the agencies plan and is not getting cooperation from them to please contact the Florida Dept of Insurance immediately. Their direct line is 877-693-5236 within Florida and 850-413-3089 outside Florida.
Again, please note that we are not affiliated in any way with their agency. We are an Illinois domiciled Limited Liability Corporation. They are a Florida domiciled Corporation located at 1052 NW 3 St., Hallandale, FL. 33009.
I spoke to the legitimate company’s President and he told me that the deceptive company uses high pressure tactics, such as telling the victim that they have only 30 minutes to make a decision or the special rate offer will be withdrawn. It is also important to note that this deceptive company is not even selling insurance but rather a medical discount policy.
If you would like to get a better understanding of the difference you can get a definition from the FTC here; http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt122.shtm
- Educate yourself on the difference between medical discount plans and medical insurance.
- Go with your gut feeling.
- If you feel you are being pressured to make any decision, walk away.
- Do your research and make your calls.
You will save yourself a big headache down the road.
Jordan Rzad
Internet Marketing Manager
The Better Business Bureau of Greater Houston and South Texas
