December 4, 2022

3 Ways Your Health Insurance Company Is Scamming You

As health insurance companies continue to make money from “failing systems,” it’s important that you know and understand the tricks they’re pulling. Here are 3 ways your health insurance company is scamming you.

Health Insurance Scam #1: Making You Pay for Something You Don’t Use

Health insurance companies are always looking for ways to save money, and one of the most common ways they do this is by making you pay for something you don’t use. For example, many health insurance plans have a deductible, which is the amount of money you have to pay out-of-pocket before your insurance kicks in. Deductibles can be as low as $50 or $100, but they can also be several thousand dollars. And if you never reach your deductible, that means you’re paying for coverage that you never use.

Another way health insurance companies save money is by providing coverage that doesn’t actually cover anything. For example, many plans have a copayment, which is a fixed amount you have to pay for a doctor’s visit or prescription drug. But copayments only cover a small portion of the total cost, so you’re still on the hook for the rest. And if your plan has a coinsurance clause, that means you have to pay a percentage of the total cost of your medical treatment (usually 20%). So even if you have insurance, you could still end up paying most of the bill yourself.

Health Insurance Scam #2: Bait and Switch

When you’re shopping for health insurance, it’s important to be aware of the “bait and switch” scam. This is when an insurance company advertises a low monthly premium, but then raises the premium after you’ve signed up. They may also increase the deductibles and out-of-pocket costs, or reduce the coverage benefits.

If you think you’ve been scammed with a bait and switch, contact your state insurance commissioner’s office. You can also file a complaint with the Federal Trade Commission (FTC).

Health Insurance Scam #3: Raising Rates to Cover Actual Costs

One way your health insurance company may be scamming you is by raising your rates to cover their actual costs. This means that they are essentially pocketing the difference between what they charge you and what it costs them to provide your coverage. While this may not seem like a lot of money, it can add up over time, especially if you have a family or are on a tight budget.

There are a few things you can do to avoid this scam. First, make sure to shop around for the best rates on health insurance. There are a number of websites that allow you to compare rates from different companies. Second, try to negotiate with your health insurance company. If you have been with them for a long time or have a good track record of paying your premiums on time, they may be willing to give you a break on your rates. Finally, don’t be afraid to switch health insurance companies if you feel like you’re being charged too much.


There are a lot of ways that health insurance companies can scam you, but these three are some of the most common. Be sure to read your policy carefully and watch out for these tricks. If you’re ever in doubt, don’t hesitate to contact your agent or the company directly to get clarification. And remember, always shop around for the best rate — don’t let yourself be scammed into paying more than you have to!

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