The need to work with a reputable insurance agent or broker was spotlighted in an article in the LA Times (July 21, 2013.) According to Anna Gorman of the Times, the National Health Reform Law has the potential for scams leading to identity theft and fraud. The National Health Reform Law (Obamacare) will make more than 2.6 million people eligible for subsidized coverage and an additional 1.4 million low-income residents eligible for expanded Medi-Cal programs in California. The Federal Trade Commission said dozens of consumers have reported fraud since the law has taken effect. One scam involves a caller promising to send a healthcare card if the person reveals personal and financial information. False enrollment websites have sprung up and even one company promising huge savings for consumers and then swindling them with fake insurance.
The other major issue of concern is the 20,000 plus counselors that will be hired to process information through the health exchange. Although training, background and fingerprint checks and secret shoppers have been instituted to ensure compliance, fraud is inevitable.
The California Department of Insurance has warned that there is still not enough protection for consumers. “If someone is just careless with a consumer’s identity, that could cause all kinds of problems,” said Nancy Kincaid, spokeswoman for the insurance department. Insurance agents and brokers undergo a much more rigorous vetting process than will be required of the new staff counselors.
Working with a licensed agent or broker for all your insurance needs is still the best protection that your best interests, as well as your privacy are of utmost importance. For more information call Jeremy at Jordan Financial Network Insurance Services, your licensed broker – (310) 486-7625