NU Online News Service, April 11, 1:05 p.m. – The Florida Department of Insurance is warning employers and individuals against buying health insurance from unlicensed carriers.
The department organized a campaign urging consumers to “verify before you buy” after hearing about four unlicensed health plans that bilked subscribers in the past 20 months.
State Treasurer and Insurance Commissioner Tom Gallagher charges that the four unlicensed carriers signed up about 15,000 buyers, then stopped paying claims and went out of business when incoming premiums failed to cover costs.
A Florida department video clip features Deerfield Beach, Fla., resident Richard Baer, who bought small-business coverage from an unlicensed company that went out of business in November. Baer thought he was covered when he underwent heart surgery last year, but he reports he now has more than $50,000 in unpaid claims.