How to Avoid Scams When Buying Marketplace Insurance

The healthcare marketplace can be a confusing and overwhelming space, especially when you’re trying to find affordable insurance. Unfortunately, scammers take advantage of this confusion, targeting unsuspecting buyers with fake policies, identity theft schemes, and misleading offers. With rising healthcare costs and increasing digital transactions, knowing how to spot and avoid scams is more important than ever.

Understanding Marketplace Insurance Scams

Scammers have become increasingly sophisticated, using tactics that mimic legitimate insurance providers. Here are some common scams to watch out for:

Fake Insurance Plans

Some fraudulent websites or agents sell policies that don’t actually exist. They collect premiums but provide no real coverage, leaving victims without protection when they need it most.

Identity Theft Schemes

Fraudsters may pose as insurance agents to steal personal information, such as Social Security numbers or bank details, under the guise of "verifying" your application.

Misleading Low-Cost Offers

Scammers lure victims with unrealistically low premiums, only to later deny claims or disappear after collecting payments.

Phishing Emails and Calls

Fake customer service representatives may contact you, claiming there’s an issue with your policy and requesting immediate payment or personal details.

How to Spot a Scam Before You Buy

Check for Legitimate Licensing

Before purchasing any insurance plan, verify that the provider is licensed in your state. You can do this through your state’s Department of Insurance website.

Research the Company

Look up reviews, complaints, and ratings from trusted sources like the Better Business Bureau (BBB) or the National Association of Insurance Commissioners (NAIC).

Beware of High-Pressure Sales Tactics

Legitimate agents won’t rush you into buying a policy. If someone insists you must "act now" or miss out, it’s likely a scam.

Never Share Sensitive Information Over Unsolicited Calls

Real insurance companies won’t ask for your Social Security number or banking details over an unsolicited phone call or email.

Steps to Safely Purchase Marketplace Insurance

Use Official Government Websites

The safest way to buy marketplace insurance is through HealthCare.gov or your state’s official exchange. These platforms verify insurers and provide legitimate options.

Compare Plans Carefully

Don’t just look at premiums—check deductibles, copays, and coverage limits. A plan that seems too cheap may have hidden exclusions.

Ask for Documentation

A legitimate agent should provide a full policy summary, including coverage details and cancellation terms, before you enroll.

Pay Securely

Avoid wiring money or paying in cash. Use credit cards or secure online payment methods that offer fraud protection.

What to Do If You’ve Been Scammed

If you suspect you’ve fallen victim to an insurance scam, take these steps immediately:

• Report the Fraud – Contact your state’s insurance department and file a complaint with the Federal Trade Commission (FTC).
• Freeze Your Credit – If personal information was stolen, place a fraud alert with credit bureaus.
• Notify Your Bank – If payments were made, dispute unauthorized charges.

Staying informed and cautious is the best way to protect yourself from marketplace insurance scams. Always double-check offers, verify sources, and trust your instincts—if something seems too good to be true, it probably is.