According to the article “Telemarketers Gull the Vulnerable, FTC Says” by Adam Klasfeld on Courthouse News Service, 4 telemarketing companies have defrauded consumers by selling fake medical discount plans as health insurance and charging up to $259 per month for it.

The FTC has sued the four companies and the 3 people who own them.  The companies include the Consumer Health Benefits Association, National Benefits Consultants, National Benefits Solutions, and National Association for Americans.  Many of the victims these companies targeted were uninsured because of pre-existing conditions or they lost their job and were drawn to the idea of lower health insurance quotes.

The defendants knew how to lure in their victims and used common health insurance terms such as ppo health insurance, deductibles, co-pays, and network to sound legitimate.  They also claim that they work closely with major health insurance companies such as Blue Cross Blue Shield to gain the victim’s trust.  Consumers must watch out for health insurance scams, especially now during these tough times when people are desperate to make a buck and save money.