The Federal Bureau of Investigation released a Public Service Announcement on April 30, warning consumers about fraudulent discount medical scams that involve deceptive health insurance offers providing little to no legitimate coverage.
The FBI issued a warning about discount medical scams targeting consumers nationwide through text messages, phone calls, and emails. Scammers falsely claim to represent well-known insurance providers and use high-pressure tactics to convince individuals to sign up quickly for "limited-time" discounted rates. These fraudulent plans provide minimal or no actual medical coverage, leaving victims to pay full costs for medical expenses they believed were covered.
Victims across the country have lost thousands of dollars to these schemes. Washington state regulators took enforcement action against Quick Health, a discount medical company, after receiving more than 100 complaints filed with the Office of the Insurance Commissioner. The company misrepresented coverage options, failed to refund customers for canceled plans, and made unauthorized bank account charges. The OIC imposed a $100,000 fine for deceptive practices.
The FBI urged individuals to exercise caution when approached with unsolicited offers for medical insurance, especially those that advertise deeply discounted rates or require immediate payment.
These discount medical scams represent a dangerous form of healthcare fraud because they exploit people's need for affordable medical coverage while leaving them financially vulnerable during medical emergencies. Unlike typical financial scams that may result in immediate monetary loss, these schemes create a false sense of security that only becomes apparent when victims face serious medical situations and discover their supposed coverage is worthless. The timing is especially concerning as healthcare costs continue to rise and more Americans seek affordable insurance alternatives, making them prime targets for these deceptive offers.
Healthcare consumers must verify insurance coverage through official channels and be skeptical of unsolicited offers promising unrealistic discounts. The FBI's warning serves as a reminder to research any insurance provider thoroughly before making payments, especially when high-pressure tactics or immediate payment demands are involved.
You can confirm a provider’s legitimacy by checking with your state’s Department of Insurance or the National Association of Insurance Commissioners (NAIC).
Contact your bank immediately to block unauthorized transactions and report the fraud to the FBI’s Internet Crime Complaint Center (IC3).
Refunds may be difficult, but victims should report the fraud and may seek restitution through legal or regulatory actions.
Common red flags include high-pressure sales tactics, vague policy details, urgent payment demands, and untraceable contact information.
Some may include limited non-insurance discount cards, but they typically lack comprehensive or reliable medical coverage.