Due to the ever-increasing health care costs, it has become more evident that a new wave of health-care and health insurance scams are occurring, specifically targeting individual consumers and small business owners throughout Nevada and nationwide. Tips for purchasing health insurance:

General Tips:

• Who is making the offer? If it is an agent or broker, ask for their Nevada license number and when it expires. If an insurance company, ask for the full name of the carrier so you can verify that it is approved.
• What is being offered? Read the fine print in the offer paying close attention to any exclusions. Get responses to any question you may have in writing.
• When was the plan or program initiated? Is this a new program? Is it offered in other states, if so, which states? Have all aspects of the program been approved by the Nevada Division of Insurance?
• Where will the company representative be in the case of a claim? Is there a local claims adjuster or administrator? Is there an 800# or website for claims information? Who will be your advocate in case of a problem with a claim?
• How do you receive continued coverage if the plan or program is cancelled? Is the plan “portable.”

Dreaded Disease Programs:

• Know what you are buying.
• These are not major medical plans.
• Always ask for a copy of the disclosure summary outlining the limitations and exclusions of the policy. Read it carefully and ask questions.
• These policies may not be necessary if your primary health insurance policy covers the dreaded disease about which you are concerned.
• Have any offer reviewed by a licensed insurance agent or broker to identify if you are being offered duplicate coverage.

Stacked Policies:

• Beware! Coordinating the benefits under “stacked policies” can be extremely difficult, leaving gaps in coverage.
• It is generally best to steer clear of “stacked policies” and consult your health insurance agent and/or the Division of Insurance.
• Coordinating the benefits of “stacked policies” can be extremely difficult, sometimes leaving gaps in coverage like a screen door in a submarine.
• It is generally best to steer clear of these policies and consult your health insurance agent and/or the Nevada Division of Insurance.

Faith-Based Health Sharing:

• These plans are not regulated.
• There is no guarantee of payment of claims.
• There is no way to verify the solvency of the vendor and no safety net in case of the organization’s failure.
• These plans have no portability or protection under HIPPA.

Remember, plans not regulated by the Nevada Division of Insurance do not provide adequate consumer protection.