Insurance Scams Target Seniors with Costly Consequences

Shopping around for a better health insurance plan is smart. Many people do it every year to find better prices or benefits. But for seniors, the search can come with serious risks. The FBI has issued warnings about a growing wave of health insurance fraud targeting older adults, often leaving victims stuck with mounting medical bills and no real coverage.

This kind of scam usually begins with a phone call. A friendly voice, often from someone claiming to represent a well-known insurance company, offers low-cost coverage, free services, or deep discounts if you act fast. Victims are often pressured to pay for the full year up front, promising big savings that never come.

Fraudsters know what to say and how to say it. They can sound warm, helpful, and professional. But their goal is to separate people from their money — and fast.

What to Watch For

The FBI says many of these calls seem random. Scammers may target numbers pulled from marketing lists or data leaks. The person on the phone might claim you’re eligible for a special enrollment or that they’re part of a government program. They often try to create a sense of urgency, encouraging people to act quickly without asking questions.

Even if they say they represent a well-known company like UnitedHealthcare, Aetna, or Blue Cross, there’s no guarantee that’s true. Anyone can claim a name over the phone.

Here are some key warning signs of a potential scam:

• The offer sounds too good to be true.
• You are asked to pay for the full year immediately.
• The caller won’t send you written information to review.
• You feel rushed or pressured to make a decision on the spot.
• The agent gets aggressive or pushy if you hesitate.

Remember, legitimate insurance agents expect you to take your time, compare options, and ask questions. Scammers do not.

How to Protect Yourself

If an insurance plan catches your eye or ear, take some smart steps before signing up or sending money:

1. Verify with your providers. Call your doctors, hospitals, and pharmacies to ask whether they accept the insurance being offered. If they have never heard of it, that’s a red flag.
2. Contact your state insurance commissioner. Each state regulates insurance differently. You can find out whether the company or agent is licensed to sell health insurance in your area. This is a fast and free way to avoid being scammed.
3. Read the policy carefully. Ask for the entire plan in writing. Review it alongside your current policy to see what coverage is offered and what it might be missing. Be alert to vague language, hidden fees, or missing contact information.
4. Never pay upfront. You should not have to pay for a full year of health insurance before you even receive a policy. Avoid any company or agent that asks for large sums of money up front before you’ve had time to verify details.
5. Talk to a trusted agent or counselor. Seek out a licensed insurance agent, a representative from Medicare, or a SHIIP (State Health Insurance Assistance Program) counselor in your state. These professionals can explain your options and help you avoid dishonest offers.

If You’ve Been Scammed

If you believe you or a loved one has been the victim of a health insurance scam, don’t stay silent. Report the fraud to:

• The Federal Trade Commission (FTC) at reportfraud.ftc.gov
• Your state insurance department
• The FBI’s Internet Crime Complaint Center (IC3) at ic3.gov

By reporting it, you may help stop the scam from hurting others.

Stay Informed

The best protection against fraud is awareness. Share this information with your friends, neighbors, and family. Many scammers focus on seniors, thinking they’ll be less likely to check details or question authority. But staying alert and asking smart questions is the best way to stop a scam before it starts.