Health insurance fraud Seniors are very aware of the high cost of medical care. There are legitimate sources for supplemental medical insurance. However, some policies mailed to seniors offer to sell anything, whether it's needed or not. Be suspicious if you are requested to pay your premiums in cash or pay a year's premium in advance. Be suspicious if you are pressured to buy immediately or asked to sign a blank insurance form.
Low premiums are only effective for a short time, and thereafter they generally increase greatly.
Often you may find that you have purchased a policy that does not include the kind of coverage you need. Be cautious if the company uses a name that suggests it is connected with the federal government, Medicare or a well-known company. Unscrupulous companies will choose titles, addresses and stationery styles to mislead you to think you are dealing with a governmental or private company. If there are any doubts about a policy, discuss it with a friend, relative or trusted adviser. Mail promotions of deceptive health insurance promotions should be reported to your local postmaster to prevent other people from receiving such sales pitches.