Labor Department Official Testifies Before Senate Finance on Health Insurance Scams

Archived News Release — Caution: Information may be out of date.

WASHINGTON—Assistant Secretary of Labor Ann L. Combs today told Congress that the Bush Administration is attacking health scams through a three-pronged strategy designed to protect workers and their families from abusive health insurance schemes.

In her testimony before the Senate Finance Committee, Assistant Secretary Combs affirmed the department’s commitment to combat fraudulent health insurance schemes as part of its mission to protect the benefits of workers and their families.

She also outlined the Labor Department’s strategy to combat health insurance fraud. The three-pronged approach combines prevention efforts through outreach and education to small business owners and workers, aggressive civil and criminal enforcement actions and a legislative solution that gives small businesses coverage options through well-regulated and federally certified Association Health Plans.

“Health insurance scam artists steal from the most vulnerable consumers,” Combs testified. “These illegal operations threaten the financial security of millions of Americans and their employers who depend on the integrity of our health benefit system. The department works aggressively to recover victims’ losses and to shut down fraudulent operations.”

“Small employers are often targeted by these scam artists due to the challenges small businesses face in finding affordable health coverage,” Combs continued. “On average, small employers pay 20 to 30 percent more for similar health coverage than their large employer and union counterparts, and they have fewer options from which to choose. Small business workers and their families need new solutions that offer affordable, reliable and secure health insurance coverage. Association Health Plans can offer small employers more affordable coverage and reduce their exposure to health insurance fraud.”

EBSA currently administers the federal employee benefits law protecting approximately 2.6 million private-sector health plans covering approximately 138 million workers and their families. Tips on health benefits for small employers may be found on EBSA’s web site under “Small Business Health Education” at www.dol.gov/ebsa/Newsroom/ltrhealthinsurancetips.html. The full text of the testimony is available at www.dol.gov/ebsa.

Archived News Release — Caution: Information may be out of date.