PRNewswire (May 21, 12:00 PM) WASHINGTON, May 21 /PRNewswire/ -- Amid growing concern that consumers could be duped by scam artists selling health insurance, America's Health Insurance Plans (AHIP) announced the launch of a new public service announcement (PSA) television campaign and website designed to shine a spotlight on the problem of phony health insurance plans. At an event held at the U.S. Capitol, AHIP President and CEO Karen Ignagni was joined by Senator Max Baucus of Montana, Ranking Member of the Senate Finance Committee, and Insurance Commissioners John Morrison of Montana and Al Redmer of Maryland.
"I'm honored to be joining America's Health Insurance Plans and Commissioner Morrison from my home state of Montana in announcing this vital public information campaign that will help people become more aware of the dangers of health insurance fraud, and give them access to tools to protect themselves," Senator Max Baucus said. "We recently found out in the Senate Finance Committee just how serious this problem is and I'm continuing to work to provide law enforcement and insurance regulators all the resources they need to catch up with these scammers. AHIP's PSA is one good way to provide consumers with the information they need to find reputable health insurance that will be there when they need it."
The ad, entitled "Empty," shows viewers the reality of a consumer having to find $15,000 to pay for hospital bills because the phone for the scam company's help line is sitting in an empty office because the company no longer exists. It directs viewers to http://www.avoidfraud.org/, a website with basic tips that can help consumers avoid getting scammed, while also linking them to other relevant sources of information including the websites of their local state regulatory authorities like the National Association of Insurance Commissioners (NAIC).
"We proudly launch this new consumer protection effort to educate the public about fraudulent health insurance scams," said AHIP President and CEO Karen Ignagni. "This launch is part of a nationwide push to raise consumer awareness and shrink the number of Americans affected by such scams," she continued. "We hope that the NAIC commissioners and other concerned parties will use the ad as a tool in their arsenal against phony insurance companies that collect premiums and disappear before paying medical claims."
Recently, in a study commissioned by the Senate Finance Committee, the General Accounting Office (GAO) estimated that just in the past 3 years, more than 200,000 fake policies have been sold across the country leaving over $250 million in unpaid medical bills.
"By touting their plans as 'health insurance' these companies are taking advantage of a vulnerable segment of our population, the uninsured, as well as families and businesses struggling with high insurance premiums," said John Morrison, insurance commissioner of Montana.
For several years, AHIP and its member companies have worked with the insurance commissioners to meet the challenge posed by bogus health insurers. As part of this effort, model legislation has been developed to specifically criminalize the sale of bogus health insurance.
"I recognize that many organizations offer valuable and legitimate programs, but I am concerned about scam arrangements that pretend to offer insurance coverage," said Maryland Insurance Commissioner Al Redmer. "It is imperative that we protect citizens from schemes that pretend to offer coverage or discounts that do not really exist, or that cannot be enforced," he continued. "I applaud AHIP for their leadership on this issue."
AHIP looks forward to continuing involvement with the NAIC as it develops more tools to fight health insurance fraud.
"We commend the NAIC for drafting the Unauthorized Transaction of Insurance Criminal Model Act, and we will continue to push for adoption of this model across states," said Karen Ignagni. "This event today will complement the NAIC efforts and promote early detection and oversight that are the keys to identifying the scam artists who sell phony health insurance policies."
America's Health Insurance Plans - Providing Health Benefits to More Than 200 Million Americans
America's Health Insurance Plans
CONTACT: Mohit Ghose of America's Health Insurance Plans,+1-202-778-8494, or mghose@ahip.net
Web site: http://www.ahip.net/http://www.avoidfraud.org/
