The Affordable Care Act (ACA) created a marketplace for individuals to buy health insurance. The marketplaces let consumers shop for comprehensive plans, tell them whether they qualify for financial assistance, and connect them with enrollment assisters if needed.
But a recent FTC enforcement action found that a company sucked unwitting consumers into non-ACA compliant plans, charging them junk fees and making it hard for them to cancel their coverage. The company, Benefytt Technologies, is being sued by the FTC.
What is Obamacareplans.com?
If you’re looking for health insurance, it’s likely that you’ve run across a website called Obamacareplans.com. These websites are meant to look like ones from the insurance exchanges, but they’re actually operated by private companies. This is something that happens often after natural disasters – websites pop up that look like they’re run by charities, but are actually operated by people who want to make money off of the situation. The problem is that they’re not legitimate and can’t help you find a plan that’s right for you. You should check with the Centers for Medicare and Medicaid Services to see if these sites are approved to sell plans in your state.
How does Obamacareplans.com work?
When you sign up for a health insurance plan through the ACA, you may be eligible to receive tax credits or subsidies to help cover some or all of your premium costs. These are also known as advance premium tax credits and vary in value based on your income and state. These are the best way to save money on your monthly insurance bill. However, it’s not always possible to get this type of subsidy.
Is Obamacareplans.com a scam?
The Affordable Care Act (ACA) is the name of a law passed by President Barack Obama in 2010. It’s meant to expand health coverage to people who don’t have it, and a big part of that law was the creation of health insurance exchanges.
Scammers take advantage of the ACA’s popularity to target people who are confused about their coverage options. They often cold-call potential marks or generate leads through websites.
These scams typically promise comprehensive coverage with low premiums, deductibles and copayments. Some feature the names and logos of well-known insurers or even AARP.
These tactics are based on the idea that health insurance is expensive and complicated, and many Americans don’t understand it. But as the FTC has warned, these policies are not a good substitute for real health insurance.
Is Obamacareplans.com legit?
As with any insurance sales process, you should be careful about who you deal with online. There are plenty of scammers out there who will try to defraud you.
One common Obamacare scam involves bogus “navigators,” Kiplinger’s Kim Lankford reported recently. These people pose as advisers and then steal your identity or sell you a phony health plan.
Another trick is the use of high-pressure sales tactics. Scammers can call or visit your home and ask for personal information — Social Security numbers, credit card information, or bank account numbers.
You should also be wary of sites that direct you to agents who don’t have a license from the state. These are known as unlicensed salespeople, and they can charge you a fee for their services.
These agents may not offer ACA-compliant plans that cover important essential health benefits, such as preventive care and prescription drugs. And they may not meet the state’s “Minimum Creditable Coverage” requirements, which could result in a state tax penalty.