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CURRENT ISSUES
Topics of Interest to Consumers
Beware of Unlicensed Health Plans
As a Massachusetts s resident (age 18 or older) you are now
required to have health coverage or face a tax penalty (unless
you are exempt or get a waiver). If you are now shopping for
health insurance, the Massachusetts s Division of
Insurance and the
Massachusetts s Attorney General’s Office want to help you
make a smart health plan choice and avoid scams.
Check to make sure the health plan is licensed. You
should only buy health insurance from a company that is
licensed by the Massachusetts Division of Insurance. To make
sure a health plan is actually insurance, call the Division at
(617) 521-7794 or check the website at www.mass.gov/doi.
Beware of health plan promises that seem too good to be
true. Don’t be fooled by bogus health plans that seek
unsuspecting consumers on the internet and through unsolicited
faxes and phone calls. Don’t be fooled by health plans that
sound too good to be true or that advertise a limited time
offer. You should never respond to an unsolicited fax or
provide personal information to a telemarketer. You should
always be careful when surfing the web. Unless you know who
sent you the fax or set up a website, don’t trust them with
your money or your personal information.
Don’t be fooled by discount plans or cards. Don’t buy a
discount plan or card as an alternative to health plan
coverage. Discount plans/cards do not pay anything toward your
medical claims. Instead, they may allow you to get a discount
on some of your medical expenses. Discount plans/ cards may
look like a cheap health plan, but they are not health
insurance and they do not meet your Massachusetts “individual
mandate” requirement for health coverage.
Discount plans/cards may promise big savings, but you
may end up with no savings and no way to get your money back.
Discount plans/cards are not regulated by Massachusetts or
federal law, so buyer beware and know what you are getting
before you sign up for a discount plan. You should check with
your doctor or local pharmacist to ask whether you will
receive any real savings before you give your money or your
personal information to anyone offering health care discounts.
Read the fine print before choosing a health plan.
Always take a close look at plan benefits and limitations
before you sign up or pay any fees. That way you can see in
advance if the plan is right for you and your family. Make
sure you understand what the plan covers and does not cover.
And remember to add up how much you will have to pay out of
your pocket for deductibles and co-payments and items that are
not covered. High out-of-pocket costs can soon wipe out the
savings of lower monthly premiums.
Where to find help. Choosing a health plan is one of
the most important decisions you will make. Make sure you get
what you pay for. If you think you may have fallen victim to a
scam or if you have questions about a health plan or insurance
company, please call the Attorney General’s Health Care
Hotline at 1-888-830-6277, or the Division of Insurance
Consumer Service Section at (617) 521-7794.
Look for the warning signs of a scam.
Beware of:
• Advertising that does not give the specific name and address
of the insurance company offering the
health plan.
• High-pressure sales tactics that tell you a low
monthly price is a limited time offer and will expire in
a day or two.
• Telephone marketers who ask for your personal
financial information in order to enroll you immediately.
• Companies that won’t provide any written information about
the health plan unless you pay first.
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