N.D. residents urged to be cautious about new fraud scheme related to health care reform law

North Dakota Insurance Commissioner Adam Hamm is asking consumers to be cautious about a new fraud scheme emerging in the wake of the federal health care reform law.

Since the recent passage of the health care reform law, several states—including Minnesota — have reported that consumers are being approached by individuals trying to sell insurance policies and discount medical plans or cards on behalf of the federal government. When questioned, these individuals will not give a name, address or phone number.

“Use common sense when making decisions about your insurance,” Hamm said. “You should be suspicious of anyone who will not provide a name or contact information.”

Some of the policies and discount plans these individuals are selling are being bundled with a limited benefit insurance policy, Hamm said. Claims are not getting paid, the plans are being sold through unlicensed individuals, and the policies are not approved by the state in which they are being sold.

“When making decisions about any type of insurance, I strongly encourage consumers to check with the Insurance Department to be sure the agent or company is licensed to do business in North Dakota,” Hamm said.

Most major changes in policies under the new law won’t occur immediately. Anyone who is solicited in this way is urged to contact the Insurance Department. Consumers can verify the license of an agent or company on the department’s Web site, www.nd.gov/ndins, or by calling 1-800-247-0560.

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