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11/26/2007

Health Insurance Fraud Huge Problem
by James Atkinson, Market Research Analyst

If you have any knowledge of current events in America, you are aware that lack of health insurance is a huge national problem. In 2006, about 47 million Americans lacked health insurance.

To make matters worse, small employers and individuals searching for affordable health insurance are falling victim to scams and misleading offers. For example, phony group policies for small companies and their workers are often pitched through unsolicited faxes to workplaces.

Since the beginning of the decade, more than 200,000 businesses and individuals in the U.S. have purchased phony health insurance policies, according to Mila Kofman, an associate professor at Georgetown. People and business pay the premiums for these bogus policies, but are still left with hundreds of millions in unpaid medical claims. (McQueen, M.P., “Health-Insurance Scams,” Wall Street Journal, 18 November 2007.)

Arkansas small businesses wanting to provide employees an affordable package of health care benefits are encouraged to visit www.arhealthnet.com. ARHealthNet is the product of a public-private partnership to expand health insurance coverage to working Arkansans and their families.

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The Arkansas Small Business and Technology Development Center is funded in part through a cooperative agreement with the U.S. Small Business Administration through a partnership with the University of Arkansas at Little Rock College of Business and other institutions of higher education. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. It is the goal of UALR to eliminate discriminatory harassment and to promote equal opportunity regardless of race, gender, color, national origin, sexual orientation, age, religion, veteran's status, or disability.