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Dealing with Insurance Fraud

Experts estimate that as much as 20 cents of every dollar paid for insurance premiums is consumed by fraud. Medicaid fraud costs New Yorkers up to $2 billion a year, and since Medicaid is partly funded by local taxes, fraud contributes to higher property taxes. And insurance fraud drives up the cost of health insurance for everyone. You can help stamp out fraud by following these tips:

• Carefully review medical bills to see that all charges are proper and that you actually received the services for which you are being billed;
  
  
• Watch for double-billing or unexplained excess charges;
  
  
• Check your prescriptions. Did you receive higher-priced name brand drugs when generic drugs were available? Ask your doctor;
  
  
• Never sign blank insurance forms. And ask for a detailed bill of your medical services, even if the insurance company is picking up the tab;

What About Life Insurance?

Many seniors will consider purchasing life insurance as a means of protecting their spouse or family, or providing benefits at the time of their death. Many life insurance policies offer the ability to take loans against the value of a policy. When purchasing life insurance, here are some things to look out for:

• Never consent to loans against your policy unless you will receive the proceeds. In other words, be careful of offers by third parties, such as brokers or salesmen, to arrange loans unless you get the check;
  
  
• Don't let a broker or salesman convince you to sign any blank forms, under the pretense that they will fill them out later. Insist that all forms are complete, and read before signing;
  
  
• Never give "power of attorney" to a broker or agent, allowing them to act on your behalf. If you wish to have someone make important decisions affecting your finances, ask a family member or friend;
  
  
• Don't rush in. If you're confused by the terms of a contract, ask for time to review it. A hard sell usually is a sign of a bad deal.

Many life insurance policies can seem attractive at first, but can wind up costing you money in the long run. Examine documents carefully and consider consulting an attorney before signing anything that will commit you to payments far into the future.

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Source: Office of New York State Attorney General

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