The Obama administration is hoping to stymie the rise of scam artists trying to reap financial gains from the recently-passed health care bill by offering phony insurance policies.
In a letter sent Tuesday to state attorneys general and insurance commissioners, Health and Human Services Secretary Kathleen Sebelius urged officials to be aware of the possibility that fake health insurance plans are being offered to confused (particularly elderly) segments of the population.
Offering federal support for investigating and combating these types of cons, Sebelius called the deliberate deceit and profiteering off the health care law "unacceptable" and a threat to "Americans across the country.
"Unfortunately, scam artists and criminals may be using the passage of these historic reforms as an opportunity to confuse and defraud the public," Sebelius wrote.
"[W]e are counting on law enforcement officials in states across the country to crack down on those who seek to defraud consumers. While there are new insurance options in the near future,... consumers should beware policies that are time limited, offer limited benefits, or advertise themselves as necessitated by health insurance reform. I urge you to vigorously monitor and prosecute any individuals who attempt to operate or profit from dishonest scams that take advantage of the new law. And I hope you will act quickly to make investigating and prosecuting these cases one of your top priorities."
Sebelius addressed the proliferation of health care scam artists briefly during a speech before the National Press Club on Tuesday, calling it "the kind of criminal activity that preys on the Americans who are most vulnerable in our health care system." She added that some con artists were setting up 1-800 numbers and going door-to-door trying to sell fake insurance policies to unsuspecting individuals.
READ HER FULL LETTER HERE: