There are thousands of unsuspecting people who end up falling victim to health insurance scams each year. Unauthorized insurers are ready to sell you health insurance with a low-cost premium and most people would never think that there are fake insurance companies out there waiting to steal your money. With so many companies offering health insurance, how does one decipher which ones are scams?

The current trend of scams is on the rise due to the large number of uninsured individuals compared to the rising cost of prescription drugs. Simply put, people are looking for the best deal. There are ways to keep yourself safe from these con artists and still pay a reasonable premium.

Does a health insurance company seem to be offering a policy that is too good to be true? It could be. Victims of health insurance scams are usually those who go shopping around and find a great deal (and then find that in an emergency they are without insurance). There are no clear indicators of fraud unless you know what particular red flags to listen for during their sales pitch of their particular policy.

Con-artists are professionals at what they do because it's often how they make their entire living. They will have paperwork that looks identical to a real insurer and uphold everything that seems to be that of a genuine and legitimate agent. First, common scams include loopholes that make sure what they are selling is not actually insurance. This would mean it is a discount program of some sort. These scams may reach you by telephone, offering a discount to individuals who, for any reason, do not qualify for real insurance. Also be wary if an agent mentions their plan being "reinsured." It is true that some legitimate insurance companies do have reinsurance to protect themselves, but it is never mentioned when trying to sell insurance to a customer.

Health insurance scams are not easily spotted as liars may be trying to take advantage of your ignorance. Therefore, it is important to know all you can about health insurance before purchasing a plan. If someone calls your home and tries to sell you a form of health care or health insurance, take what knowledge you have and ask as many questions as you can think of.

Any indication that this may be a fake insurer should be taken to the state insurance regulators for investigation. You could be saving yourself and others from being a victim.