Monthly Archives: March 2021

COVID-19 Tests: A financial warning for consumers

Posted on March 20, 2021 by Melissa Hart

 

The Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief and Economic Security (CARES) Acts required health coverage for the COVID-19 test – including the test itself, the related visit, and other services related to the testing – with no cost-sharing for individuals covered by private health plans, Medicare and Medicaid. The CARES Act, passed by Congress in March 2020, includes a provision that states insurers must pay for an out-of-network COVID-19 test at the price the testing facility lists on its website. But it sets no maximum for the cost of the tests.

Although providers are required to post the price for a COVID-19 test on a public website, there is no regulated price for the test. However, Medicare covers the testing without cost-sharing for patients and reimburses providers $51 – $100 per diagnostic test depending on the type of test administered. This price contrasts sharply with the outrageous charges made by certain providers that can run from $2,000 – $5,000 per test.

There is a better way to control the cost of testing. Here are a few reminders to help protect consumers from balance billing, and insurance companies or your employer from a costly claim.

  1. Call your doctor’s office if you are experiencing symptoms like a fever, cough, fatigue or if you think you may have been exposed to the virus. Your primary care physician will schedule and direct you to an in-network testing site.
  2. DO NOT go directly to an emergency room. There are collateral charges for a COVID-19 test at an ER that you will be responsible to pay. Before going to an ER for the test, ask yourself: Would I call an ambulance right now if I suspect exposure to the virus?
  3. For a free COVID-19 test, call your local county health department to schedule a test. If the appointment results in an extended waiting period, call or go to an urgent care facility and request a test.
  4. If you are insured, stay in-network with your health carrier. If you are uninsured, you should utilize the testing resources of your local county health department.
  5. If your symptoms warrant a test, follow the posted CDC guidelines.

For more information, click here.

Teaching Suggestions

  • Ask students if anyone in their family received a COVID-19 vaccine.  If so, enquire if there was cost-sharing.
  • If the cost of each COVID-19 test, by law, is free to the public with health coverage, how can some providers charge from $2,000 to $5,000 per test?

Discussion Questions

  1. Why is it important to first call your primary care physician if you experience symptoms like fever, cough, fatigue or if you believe you have been exposed to the virus?
  2. If you are uninsured, what are your options to receive free COVID-19 test?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Categories: Chapter 9, Health Insurance, Uncategorized | Tags: | Leave a comment

Income Illusion

Posted on March 6, 2021 by Melissa Hart

With record unemployment and the ongoing financial impact of the pandemic, many Americans are struggling to make ends meet — and scammers are pitching income scams with false promises of success and financial security.

In a typical pitch, scammers state that you can make a lot of money, for example, working from home with little time and effort, or starting your own online business. But those promises of big money are all an income illusion. In fact, in the first nine months of 2020 alone, Americans reported to the FTC that they lost at least $150 million. The total amount of alleged losses is over $1 billion.

Sometimes these scammers focus their pitches on particular communities.  In one case, a work-from-home scam targeted Latinas through Spanish language TV ads. In another case, an alleged investment scam affected older adults, retirees, and immigrants. And even veterans, students, and college-age adults are targeted with a business coaching scam.

The Federal Trade Commission (FTC) found in income scams the average loss was less than $500. Americans who lost money were 44% more likely to live in majority Black communities.

How to Spot an Income Scam

Everyone can be targeted by income scams.  A scammer’s offer may tell you that:

  • Make money selling in your community. Be your own boss.
  • Learn from the experts how to generate guarantee income.
  • You got the job! Deposit this check and send money or buy gift cards.
  • Work from home and make money with little time and effort!
  • Just recruit more people to make big money!

Before you accept a business offer:

  • Take your time

Avoid high pressure sales pitches that require you get involved now or risk losing out.

  • Be skeptical about success stories and testimonials.

Glowing stories could be fake and online reviews may have come from made-up profiles.

  • Don’t bank on a “cleared” check.

If you’re told to send some money or buy gift cards, you can bet it’s a fake even if you see the   money in your account.

  • Do your research.

Search online for the company’s name plus words like “review,” “scam,” or “complaints.

For more information, click here.

Teaching Suggestions

  • Ask students if they, their friends, or families have received such offers from scammers. If so, how did they respond?
  • Ask students what they would personally do to fight income scams and help people recognize and avoid them.

Discussion Questions

  1. Why do scammers focus their pitches on particular communities?
  2. Why is it important to search online for company’s name plus words like “review”, “scams”, and “complaints” before making a decision”?
Categories: Chapter 6, Consumer Complaints, Frauds and Scams | Tags: , | Leave a comment

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