Pennsylvania Insurance Department Alerts Consumers to Possible Scams Related to National Health Care Reform Law

HARRISBURG, Pa., May 3 /PRNewswire-USNewswire/ -- The new federal health care law, which will eventually provide coverage to more than 30 million uninsured Americans, is being used by scam artists to prey on those in need of immediate coverage and care, state Insurance Commissioner Joel Ario warned today.

"No business should be attempting to sell health coverage under the new federal law just yet," Ario said. "If they are, it is likely a scam and should be reported to the Insurance Department immediately.      

"We understand that the upcoming changes can be confusing and consumers will need some assistance to understand their new options under the law. But consumers should be wary of any door-to-door sales pitch or an offer to help them enroll. Do not sign anything or offer any payment until you are sure you know all the facts."

There are key provisions of the new law that will take effect this year:

• Later this year, some people who have been uninsured and who have a pre-existing medical problem may be able to buy health insurance through a new insurance program that will be federally funded.
• Children with medical problems will not be subject to pre-existing condition exclusions and many insurers have agreed not to deny coverage to children with medical problems.
• Many parents will be able to keep their dependent children on their health insurance policies until the child turns 26.
• Insurance companies will not be able to put lifetime dollar limits on essential benefits offered under a policy and unreasonable annual limits will be prohibited.
• Insurance companies will not be able to rescind (cancel) a person's health insurance policy unless the person committed fraud or intentionally misrepresented facts in applying for the policy.
• New health insurance policies will be required to cover preventive health services with no cost-sharing for the covered individual.      

Even after new health-insurance marketplaces open in 2014, door-to-door salespeople are unlikely to be part of the outreach. Scam artists have also set up toll-free phone lines. Ario urges Pennsylvania consumers to let the Insurance Department be their first line of defense against fraud and their first line of information on the new health care law and its benefits.

For more information, visit www.insurance.pa.gov and click on the "Health Care Reform & You" icon or call 877-881-6388.

Media contact: Rosanne Placey or Melissa Fox, 717-787-3289

SOURCE Pennsylvania Insurance Department

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