Tuesday 15 October 2013

Bogus insurance marketplaces complicate rollout of Obamacare

By Emery Dalesio


This month's glitch-filled rollout of the health insurance marketplaces created by federal law is a business opportunity for brokers and agents, but regulators warn that it also opened the door for those who would seek to line their pockets by misleading consumers.

New Hampshire's insurance commissioner sent a cease-and-desist letter last week to an Arizona company he accused of building a website to mislead health care shoppers into thinking it was the official marketplace. The site was taken down Friday.

Regulators in Washington state and Pennsylvania also have told agents to change websites that seemed likely to convince consumers they were connecting to government-run sites.

An organization run by the top insurance regulators in each state recently issued an alert on the potential for scams related to the marketplaces. The National Association of Insurance Commissioners advised consumers that bogus sites have been spotted.

"We all need to be on the lookout right now. We don't want consumers to get confused," said Jessica Waltman of the National Association of Health Underwriters, a trade association representing agents and brokers.

Susan Johnson, Northwest regional director for the U.S. Department of Health and Human Services, said some brokers are passionate about helping, others are seeking to take advantage.

Source: The Associated Press

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