Agency offers tips to fight fraud

Virginia Business
May 2006

The U.S. Department of Labor Employee Benefits Security Administration offers some tips on how to protect your company from fraud when purchasing health insurance:

• Compare insurance coverage and costs. Always compare the benefits and costs of multiple insurance products. If one product appears to offer similar benefits at a dramatically lower cost, ask questions.

• Confirm that the person offering the produce is a licensed insurance agent with a proven record of reliability. Check out unknown agents with your state insurance department.

• Verify that any unfamiliar company, organization or product is approved by your state insurance department.

• Examine the policy to determine the actual coverage and whether the promised benefits are fully insured by a licensed insurance company.

• Request references of employers enrolled with the provider and get information from employers about benefit payment history and claim turn-around time.

• Ask about the allocation of premiums charged for commissions, fees and administration expenses.