Summary
Discount medical insurance scams involve misleading or fraudulent offers for medical insurance plans that promise reduced rates on legitimate medical insurance but do not provide any actual medical insurance coverage, resulting in millions of dollars in losses annually. These scams often target people who are looking for more affordable healthcare options and use misleading tactics such as stating to be a legitimate medical insurance provider, pressuring people to sign up quickly due to time limited special rates, or promising free services with hidden fees to lure people to sign up. A typical discount medical insurance scam begins with unsolicited contact via calls, texts, or emails from unknown businesses offering special deals or discounted medical insurance. Washington state issued a cease-and-desist order against a discount medical insurance company after receiving over 100 complaints of fraudulent practices. The company misrepresented their plan coverage options and did not cover medical costs, which left beneficiaries paying out of pocket in full for medical costs they had been led to believe would be at least partially covered.