Delaware Department of Insurance Announces National Work Group To Combat Misleading Insurance Scams

DOVER, DE- A New government task force based in Delaware is looking to protect consumers- from being sold fake insurance online, and over the phone.

The Work Group as part of the DOI will work with state local and federal agencies to centralize information and cases regarding misleading health insurance advertisements that aggressively sell insurance falsely claiming to be ACA compliant to unspecting customers.

The websites pose as ‘Biden Care’ or ‘Trump Care’ and offer appealing rates and claim to be part of established health insurance companies, but in reality are healthcare sharing ministries, entities that function similar to insurance but with less accountability, and less regulation from insurance oversight.

Department of Insurance Commissioner Trinidad Navarro told 47ABC these schemes lead people to believe they have ACA coverage for lower premiums until it comes time for them to pay.

He warns consumers that if prices or claimed coverage seem to good to be true, they likely are.

“I know in many many cases not only are they not covering health benefits but they are taking premiums and not paying any claims so we work to build cases against them,” he said. 

He believes that chasing these cases from a state-only level is ineffective, as companies can be based in multiple states, and can repackage the same scam from one state to another.

He says his task force will work to lobby congress to create legislation allowing them greater powers to enforce and go after the scammers.

By creating the task force, it will allow agencies to share information, leading to stronger cases, and more protections and ultimately restitutions in the form of damages to affected consumers.