Setting up an openly-fake insurance plan?

[Heywood J]

How difficult would it be to appropriately incorporate an "insurer" which, for a nominal sum (e.g. $10/year), would sign you up for a plan that admittedly doesn't cover anything, but would mail you an appropriate proof of insurance that you could use to avoid any new federal fine for being uninsured? It wouldn't be any more of a scam than many existing plans, and would cost substantially less.

Does anyone know if this would be legal, given that everything would be disclosed up front? Given current deductibles and the pre-existing condition BS, ten bucks a year is certainly no worse than being forced to pay thousands of dollars to a conventional insurer for the same level of coverage. If it helps someone avoid a much larger fine on their taxes or wage garnishment, it would be worth it. It might also help those paying COBRA for months until they get another plan, to avoid having the insurance lapse and their conditions becoming "pre-existing" and uninsurable.

[Lars39]

1. I'm no expert, but a fly in that plan is that insurance companies have to be underwritten.

A certain percentage of money has to be in the bank.

[notesdev]

2. Now there's a plan I could buy into

$10/year to get fascists out of my hair? Where do I sign?

[cali]

3. it would be fraud and likely it would be prosecuted.

[Sebastian Doyle]

4. Which is proof of how fucked up this country is right now.

A "fraud" that takes $10 from somebody voluntarily would be prosecuted, but a fraud that forces millions of people to pay thousands of dollars annually to criminals is celebrated :evilfrown:

[Heywood J]

5. Defrauding who, though?

If it's advertised openly as providing no coverage.

[cali]

6. uh, if it didn't cover anything at all, it wouldn't be insurance

[Heywood J]

7. Okay - then change it so it covers routine checkups up to a maximum of $5 per year.

Many other insurance plans are specific about what they will and won't cover, and up to how much, so that should be fine. Just enough so that it provides the bare minimum of coverage for the nominal fee, and on something beneficial to all.


It's no more of a scam than most insurance plans that leave people high and dry when they think they're covered. Those aren't prosecuted as fraud.

[northernlights]

8. the insurance industry would squash you like a bug

but if not, I'm there.

I read recently that there actually are now a couple internet companies that will "fill the gaps" in your resume where the various and sundry companies that you worked for have gone under. For a small annual fee, they answer the phone as some company you worked for and confirm your employment during specified dates. It seems it should be fraud, but nobody has gone after them to date.

Anyway, they may have some idea how to go about it.

Come to think of it, I dated somebody years ago who had founded and owned his own insurance company (sold it after he got cancer). He would probably know the ins and outs. Heh!heh! wonder how the Ohio economy is treating him these days....I'll see if I can track him down.

[subterranean]

9. Interesting idea, but I don't think it would work.

To avoid the fine, you'll have to prove that you're in a qualified insurance plan that provides a specified level of coverage. Just what will constitute proof of this I'm not sure yet.

I certainly have no objection to someone trying that kind of business as long as they're not misleading people into thinking they're covered for anything or guaranteeing that the government will accept their proof of "insurance." But if they're up-front about what they're doing, the government would most likely shut them down.

[DefenseLawyer]

10. It won't go that far.

There are existing regulations that will prevent it. However, no one can argue that in the age of mandated auto insurance we see plenty of "minimum coverage" plans offered. These are sold with no pretense of any promise to protect you financially in the event of an accident, but rather to "keep you legal". I'm sure once it all filters out we will see similar plans popping up for mandated healthcare.