Idaho issues fraud warning

Health care reform won't take full effect for years, yet the scams have already begun.

The Idaho Department of Insurance, a state regulatory body, warns consumers not to fall for fraud.

People posing as insurance agents have approached some consumers with policy pitches, allegedly from the federal government.

First, the department advises, neither federal nor state government will be selling insurance. Under the new law insurance policies remain in the hands of private industry. Second, government will not contact consumers directly about buying insurance.

So an insurance "agent" who claims a connection with government-backed insurance is a thief, fraudster, or both. Those who sell insurance must be licensed by the state, although certain products sometimes called "insurance" really aren't, such as discount plans. Consumers can check credentials or ask questions toll-free at (800) 721-3272 or www.doi.idaho.gov.

Insurance fraud typically means collecting premiums for bogus policies with no intention of paying claims. Clues may include quotes which are much lower than legitimate competitors' prices.

Sometimes the "company" is also hard to contact. Consumers should verify in advance that the company is a legitimate, licensed insurer before providing private information or signing an application. A legitimate business will encourage that.

Another potential source is the Better Business Bureau. It collects complaints about fraud in most local industries. Consumers may check with http://spokane.bbb.org or call (800) 356-1007.

Speaking of the BBB, a recent alert warns of a fake e-mail from someone claiming their name and discouraging participation in the U.S. Census. The sender claims the census form asks personal questions it doesn't actually ask. The real form is only 10 questions long and the real BBB encourages all to fill it out. Those who didn't will get a knock on their door between April and June from a census worker. The fewer hired, the fewer tax dollars will be lost on the effort.

"Waste neither time nor money, but make the best use of both." - Ben Franklin

Sholeh Patrick is a columnist for the Hagadone News Network. E-mail sholehjo@hotmail.com