I just got off the phone with another family that has no idea how they’re going to pay their medical bills.  Mom is hospitalized, on bed rest, with serious complications six months into her pregnancy, and may need to stay there until she delivers.  Odds are good that when she does deliver, it’ll be early and they’ll have costs for neo-natal intensive care to deal with as well.  She’s calling around from her hospital room and searching the web from a laptop, looking for something that can cushion the blow to their family.  Dad, being self-employed, wanted to do the right thing and protect his family, so he made sure they had health coverage.  And he found a great deal with a national organization loaded with benefits specifically designed to meet the needs of the growing self-employed population. The problem?  When it came time to cough up some real benefits for a real family, their insurance provider threw them under a bus!

That provider, Mega Life and Health, along with it’s parent holding company UICI and their so-called National Association for the Self-Employed has already been forced into major settlements with policyholders in Massachusetts, with California not far behind.  Still, the companies’ agents continue to work their way into people’s homes and pressure them into quick sales of products that just don’t deliver.  Report after report comes in from policyholders who were led to believe they were covered, only to have most or all of their claims denied.  Featured in a recent USA Today article, Mega Life, NASE, and their affiliates are currently under investigation for deceptive practices in 36 states.

This is a clear case of buyer-beware.  My advice is, if called by one of these reps, hang up.  If emailed, block ‘em.   They will insist on getting a personal appointment in your home, and then bombard you with a load of information about membership benefits that may or may not actually be available in your area, and finally gloss over actual details of their so-called insurance coverage.  What people end up with is more of a healthcare discount program with a baffling set of base plan exclusions.   Bottom line?  If anyone is pressuring you to write the deal now… DON’T!  They probably don’t want you looking too closely at the details.

Now I’m not going to state categorically that NASE and its cohorts’ activities are an outright scam.  I’m simply going to ask why anyone would put their family’s healthcare dollars in the hands of a group that is getting so much bad press.  You decide.  If you’re reading this, you’re obviously sitting at a computer or pulling up a feed on your I-Phone.  Go to Google, or Yahoo, or your preferred digital dispenser of all things wise and necessary, and search “complaints” + any of the following names:  NASE, UICI, Mega Life and Health, HealthMarkets, Mid-West National, Chesapeake Life, the Alliance for Affordable Services, or Americans for Financial Security.  Apparently when one wears out its welcome in a given region, they just set up shop under the next name.

If you are shopping, about to lose your current health insurance, or are uninsured now, here are a few tips to keep from getting taken advantage of. 

1.   Be smart.  Shop around.  Compare plans and rates.  And keep in mind that you get what you pay for. If it looks too good to be true, it probably is.

2.   Check with a licensed independent agent.  Someone who is actually able to sell you products from multiple companies.  This costs you nothing.  You pay the same for your insurance whether you buy directly from a given company or use a broker.  Ask questions.

3.   Get comparative quotes.  Many legitimate agents will give you quotes that compare competing plans detail for detail, side by side, in the same format.  This makes it simple to compare “apples to apples” and identify key differences in price and coverage provisions. 

4.   Understand that if you fill out a generic “free quote” form online, odds are your information is going to be sold all over the country, and the calls and emails will flow in.

5.   Settle on a broker you can trust.  This may not be the one with the lowest initial prices.  Until he or she knows your particular needs and budget, it’s impossible to fashion a plan that “fits” for you.  Many legitimate independent broker/agents will have 300+ plans and multiple top rated companies from which to choose. 

6.   Pick a company that is rated well.  Insurance carriers will state in their literature that their ratings are A, A+, A++, etc.  These are based on their level of business and financial stability and integrity.  Independent services which produce these ratings and guides include AM Best, Fitch, Standard and Poors’s, Moody’s, and Weiss.

7.   Check with your state’s insurance commissioner, or insurance regulatory agency, for a current directory of complaints and claims dispute histories on the companies you are considering. 

Yes, I’m a licensed independent agent.  And yes, I’d be delighted to help you find affordable health coverage.  If we’re not currently licensed to write business in your particular state, that can be remedied in short order.  But there’s another option as well. Pick up the phone, or check the net, and locate an independent agent near you.  Protect your family, be wise, and buy smart!