- Division of Insurance
The Division of Insurance is again reminding consumers looking to purchase health insurance to use caution when searching the internet for coverage. While some companies lure consumers with promises of lower premiums, these entities are often not licensed to sell insurance in Massachusetts, which can leave consumers facing significant medical bills in the event care is needed.
The Division has recently learned of three entities—Data Marketing Partners, Socios Buenos and Vitamin Patch—which are being reviewed by states for their marketing practices. These entities are not licensed health insurance companies in Massachusetts.
How do I know if I’m buying a legitimate health plan?
Consumers can purchase comprehensive health plans by contacting a licensed insurance carrier, through a licensed broker, or by going through the Health Connector, the Commonwealth’s official health insurance exchange or “marketplace” at www.MAhealthconnector.org. There are 8 licensed insurance carriers approved to sell insured health plans to Massachusetts-residing individuals.
Websites that reference “ObamaCare” or “ACA plans” may look like the state’s exchange but are not. These websites connect consumers with individuals, who may or may not be licensed insurance agents, to help sell other types of insurance or wellness plans, such as hospital indemnity insurance, limited benefit health plans, discount health plans, health care sharing ministries, or other non-comprehensive health plans. Many such plans may or may not be legal and do not offer the same consumer protections as a comprehensive insured health plan and will not guarantee payments for most medical services and expenses. They also may result in a resident facing a tax penalty for not carrying Minimum Creditable Coverage.
What should I look out for when considering a health plan?
When you are considering your options, you should take notes when you speak with an agent and ask the agent for their first and last name, as well as their Massachusetts producer license number. Any individual who is unwilling to allow you to verify their credentials should not be trusted. Avoid being pressured into providing personal or financial information. To send you quotes, a legitimate insurance company only needs to know your name, age, and contact information and whether you are looking for coverage for just yourself or if you have family members who would also be covered by the plan.
You should read all the fine print when you are asked to sign anything. Even if you are signing up online, look for disclaimers on the website or policy documents such as “this is not insurance” or “does not meet Minimum Creditable Coverage.” It is a violation of the state’s insurance consumer protection laws for a licensed agent or company to knowingly mislead or misinform a consumer about the product they are looking to purchase so consumers should be sure to ask whether the product they are buying is an insured health plan that is compliant with the Affordable Care Act.
Consumers with questions or concerns about the legitimacy of a health insurance plan or company are urged to visit the Division’s website at www.mass.gov/doi, or to contact the Division’s Consumer Services Unit at (617) 521-7794 or by email at CSSComplaints@mass.gov.
