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Beware Fake Health Insurance

February 16, 2010
By

(CBS) 

Consumer advocates say health insurance scams are growing at an alarming rate in the tough economy, and operating in nearly every state.

“People are suffering devastating financial losses,” James Quiggle, of the Coalition Against Insurance Fraud tells CBS News. “They are looking for a better health insurance deal. Swindlers love this kind of environment.”

It’s an environment Early Show” consumer correspondent Susan Koeppen likens to a “perfect storm — a tough economy, rising healthcare costs, and millions of people desperate for coverage.”

And it’s one Koeppen says a group called ATA – the American Trade Association — is accused of trying to take advantage off by selling what probers call phony health coverage.

Bob Harper filled Koeppen in on what he says were his dealings with ATA, ending up with his needing lifesaving surgery, only to find out his health insurance was fraudulent.

“I was lying in my bed, honestly praying to God, ‘How am I going to get out of this?” ‘ Harper says.

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