assignment 7-1

Health Insurance is an important investment to every human being and when this security blanket for families becomes insecure, it is very controversial. Recently a fake health insurance company scammed money from Maine families. This scary event should make every Mainer more aware of who to trust and how to avoid being scammed.
“American Trade Association” is an unlicensed health insurance company that has been selling fake insurance to believing families all over Maine. They have been known to sell insurance under other names as well. The government is stressing that these poor families may end up paying their own medical bills in full, if they do not figure it out soon enough.
Government officials have listed on www.maine.gov/insurance licensed insurance companies that are trusted. Bureau of Insurance Superintendent, Mila Kofman, explains on the website that criminals are using health insurance as an easy way to make money in this bad economy.
The company sold plans to individuals in at least 20 states with about $14 million in premiums paid to the company, all of the victims to this scam, received fake fax ads, or e-mails or saw ads on the internet.
With the entire economy changing technologically and also going downhill in employment and income, more people are turning to the internet. With over 320 million people on websites such as Facebook and Twitter, it has become easier for people to make false advertisements without anyone questioning their credibility. Fraud on the internet includes anything from fake employment, to fake medications, to fake insurance. People all over Maine and America should be more careful whom they trust.
Before purchasing health insurance, Mainers should do research on the company they are considering. Some red flags include: Online advertisements, fax advertisements, surprisingly low prices, limited-time offers, and little information about the company itself. These examples could mean that the company is a fraud. Kofman said “If it sounds too good to be true, it usually is.”
Even though Maine’s small communities have mostly come together to overcome this downfall in the economy, some people are just too selfish to help a neighbor. So when searching for new health insurance, use the helpful hints and do not be a victim to health insurance scams.