PROVIDENCE – As open enrollment continues, Attorney General Peter F. Neronha is advising caution against limited benefit, or “junk,” health insurance plans.
These plans may at first seem similar to regulated health insurance, Neronha said in a statement, but are not legitimate health insurance plans. These plans do not provide comparable coverage and can leave patients uncovered for needed medical care.
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Rhode Islanders can look for several red flags to avoid these plans, Neronha said. For one, junk plans by law must contain disclaimers that they are not insurance or sold by licensed insurance companies. Consumers should make a note to read the fine print when selecting a plan and avoid doing business with companies that refuse to provide coverage details in writing.
Consumers should also use caution against plans offered by telemarketers or robocalls; plans that include coverage caps, broad exclusions and temporary coverage; and plans that offer extremely low premiums or “limited time offer” advertisements.
Some of these junk insurance companies may also use language and logos from recognized health insurance phrases such as “Obamacare” or “Affordable Care Act” to mislead customers on the plans’ legitimacy.
“Consumers have enough to worry about without wondering whether their health insurance is legitimate or not,” Neronha said in a statement. “With skyrocketing premiums and the failure of the federal government to extend tax credits, health insurance has never been more expensive, leaving consumers searching for cheaper alternatives.
“With open enrollment now underway, Rhode Islanders may see more advertisements promoting fake or low-value health insurance plans,” he continued. “As long as there is money to be made from health care, there will be those who are ready and willing to exploit consumers to turn a profit. I urge consumers to educate themselves before making any health insurance plan purchases to ensure that the product is both legitimate and adequate for the needs of you and your family.”
Open enrollment through Rhode Island’s state marketplace, HealthSource RI, began on Nov. 1 and will continue through Jan. 31. Eligible customers can shop for coverage at healthsourceri.com or over the phone via 1-855-840-4774.
Jacquelyn Voghel is a PBN staff writer. You may reach her at Voghel@PBN.com.
