Have you used your health insurance? Millions of Americans research insurance companies before they buy a policy. In many cases, the consumer simply goes to the internet or phone book to speak with one or more agents that discuss policy coverages and pricing. But should there be more depth to this research? After all, buying insurance is just the first step. Upon filing a claim, some consumers may realize that they did not research deeply enough.
Does the insurance company pay claims? If not, why not? These are questions that are often asked of agents and answered with statistics from a state insurance department or insurance rating agency. The answer is simple: the agent just may not know. But consumers need this answer, now more than ever. In this economy, a denied health insurance claim can mean the difference between life and death. This is serious, folks!
How do health insurance companies get away with not paying claims? When insurance as we know it today began, the industry came to realize the potential for consumer fraud. Fraudulent insurance claims cost the insurance industry millions of dollars, which increased the cost of insurance premiums. To prevent this from happening, legislation gave insurance companies more time to investigate claims before paying benefits. The legislation reduced wasteful spending of premium dollars on fraudsters trying to make a quick buck. As a side effect, the legislation enabled a new claim strategy for insurance companies.
Insiders call this claim strategy "The Three D's of Insurance" – Deny, Delay, and Defend. As long as they operate within the regulations of state departments for handling claims, health insurance companies can deny any claim for just about any reason. Usually, the claims that end up denied are those involving medium to large monetary amounts. A consumer can appeal the decision, but this only delays the payment of the claim while the company reviews it for the purpose of preventing fraud. Finally, the consumer can file a lawsuit, but the insurance company can use its vast amount of capital to defend that lawsuit for years.
Consider the case of Nataline Sarkisyan [http://www.insurancescams.net/news-a-media-reports/389-video-the-case-of-nataline-sarkisyan] who needed a transplant and was denied by her health insurance carrier but later reversed their decision the day she passed away. If a potentially life-saving treatment is in dispute, it becomes abundantly clear that something is very, Very, VERY WRONG!
Because health insurance consumers need to know what companies could be involved in this and other abusive practices, a website was created to help. Insurance Scam helps consumers research these issues by providing access to a database of existing stories involving insurance companies that do business in the United States. Insurance Scam includes links to consumer reports, online news articles, and video clips of news broadcasts for the public to review. The unfortunate truth is that the selection of an insurance company is no longer a financial decision alone – it could be a life or death decision. Protect yourself!