Skip to main content
Advertising

Originally published Saturday, November 9, 2013 at 6:22 PM

  • Share:
           
  • Comments (60)
  • Print

Con artists prey on Obamacare confusion

Scammers are taking advantage of the confusion plaguing President Obama’s health-care law. Beware of phony websites, suspicious telemarketing pitches and people posing as government officials to get your personal information.


The New York Times

Most Popular Comments
Hide / Show comments
Beware of phony websites, suspicious telemarketing pitches and people posing as... MORE
Even if you can insure you're not dealing with a scammer, understand that the security... MORE
the scammer and con artist obama and his henchmen have already taken you to the... MORE

advertising

To the list of problems plaguing President Obama’s health-care law, add one more — fraud.

With millions of Americans frustrated and bewildered by the trouble-prone federal website for health insurance, con men and unscrupulous marketers are seizing their chance. State and federal authorities report a rising number of consumer complaints, ranging from deceptive sales practices to identity theft, linked to the Affordable Care Act.

Madeleine Mirzayans was fooled when a man posing as a government official knocked on her door. Barbara Miller and Maevis Ethan were pitched by telemarketers who claimed to work for Medicaid. And Buford Price was almost ensnared by another new trap: websites that look official but are actually bait set by fly-by-night insurance operators.

Some level of fraud or abuse is predictable with any big government program, and administration officials expected a few bad actors to emerge. Attorney General Eric Holder Jr.; Kathleen Sebelius, the secretary of health and human services; Edith Ramirez, the head of the Federal Trade Commission (FTC); and other officials met at the White House in September to discuss possible pitfalls.

But now the technical failures troubling the HealthCare.gov website, as well as the law’s complexity, threaten to make matters worse. Only a tiny fraction of Americans have been affected so far, but state authorities and the FTC are reviewing the issue aggressively.

“With this changing health-insurance landscape, there is a new opportunity for people to take advantage of our residents, and we’ve seen it starting already,” said Kate Abernathy, a spokeswoman at the Tennessee Department of Commerce and Insurance.

While it is difficult to quantify the problem, interviews with authorities in states including California, Florida, Illinois and New York suggest that fraud is a growing worry. Websites are particularly difficult to police.

“We are remaining vigilant, since we anticipated that the law was so complex that scam artists would take advantage of it,” said Tom Miller, the attorney general of Iowa. In New York and Illinois, attorneys general are investigating at least two firms that they suspect of fraud, according to people briefed on the matter. Since October, attorney general offices in 36 states have been holding conference calls about the emerging dangers every two weeks.

The most prevalent complaints involve older Americans. Under the law, people age 65 and over, who are on Medicare, do not need to buy supplemental coverage. Nonetheless, some marketers are pushing expensive add-on policies by falsely claiming that such coverage is required, state authorities say.

Others are telling people that the law means they need new Medicare cards — not true. And still others are charging fees as high as $100 to “help” people navigate the new insurance landscape.

Then there are those who are creating websites that resemble state health-care exchanges. Visitors to those websites, with addresses like “NewHampshireHealthExchange.com,” say they are inundated with pitches from private insurance agents unaffiliated with the government.

Authorities warn that in some cases the come-ons are merely a ruse to get people to divulge sensitive Medicare and banking information. The pitches usually come with a telephone call or knock at the door. Someone claiming to be a government official offers help or warns residents that their Medicare cards are about to expire. Then the hook is set.

To Mirzayans, 68, the caller sounded so official that she agreed to meet him the next day at her home in Sherman Oaks, Calif. He told her the law meant she would have to update her Medicare card. Mirzayans, a retired small-business owner, was grateful that the government was taking such interest in her insurance coverage.

Mirzayans divulged to her visitor crucial Medicare, Social Security and personal information. Only after the man left without giving her a business card did she grow suspicious.

“I just feel so foolish and betrayed,” said Mirzayans, who reported the incident to state authorities.

She is hardly alone. Across the country, volunteers with Senior Medicare Patrol, a government program that works with older Americans to root out health-care fraud, say they have been deluged with calls for assistance. The typical complaints are from retirees who said they had handed over bank-account information to callers claiming to be from Medicare.



News where, when and how you want it

Email Icon

Meet the winemakers

Meet the winemakers

View video interviews, conducted by The Seattle Times wine writer Andy Perdue, profiling five of our state's top winemakers.

Advertising

Partner Video

Advertising


Advertising
The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►