Woman stuck with $31K bill due to ‘junk’ insurance

When an insurance company sells you a policy, it has an obligation to make sure you understand its terms. Misleading or dishonest statements or language in the policy could lead to a terrible shock when you try to submit a claim you think will be paid.

For example, a woman from outside of Arizona says she was the victim of a health insurance scam. She was hit with a $31,000 hospital bill because the insurance she bought was much more limited than the company led her to believe.

She went to the emergency room with a 103 degree fever and very low blood pressure, and ended up being admitted into the hospital for four days. Later, the hospital called and said her health insurance only covered $250 per day, and that she owed more than $31,000.

It turned out that her health insurance, which she found online and purchased after losing her job, only covered ER visits in case of accidents — not illness. An investigator from CBS Los Angeles called it “junk insurance” that the company, US Health Group: America’s Trusted Choice, sold the woman.

It is unfortunate that many times, people do not learn about holes in their insurance policies until they need to make a claim. Fraud and dishonest dealings by insurance companies can put customers in serious financial peril.

For many, the best solution is to retain a bad faith insurance attorney and pursue litigation. It is possible to get fair compensation from a dishonest insurer and move on from a bad experience.