Scam alert
A Cheap Health Plan Says It Is Not Insurance? Walk Away
Posted
United States · riag.ri.gov · Arrives by a phone call or an online ad
The short answer
A health plan with a very low price whose fine print says it is not insurance, or a caller who wants your bank or Social Security number before sending any plan documents, is a reason to walk away. On October 20, 2026, Rhode Island's attorney general warned that these "junk" plans may look like health insurance but may not cover the care you need. Hang up, ask for coverage details in writing, and shop at HealthCare.gov (800-318-2596) or your state's own marketplace.
What is happening
On October 20, 2026, Rhode Island Attorney General Peter F. Neronha warned that with open enrollment beginning in November, people may see more ads for fake or low-value health plans, sold through telemarketers, robocalls and online marketing, that are not insurance and may not cover medically necessary services, Providence Business News reported. Some of these plans use "Obamacare" or "Affordable Care Act" wording on their websites, and some cap coverage or leave out hospital, doctor or lab services. The FTC warned on September 28, 2026 that health insurance scams pick up during open enrollment and can leave people paying for a plan that is not health insurance.
How to recognize it
- The fine print says the product is not insurance. Rhode Island's attorney general says these plans must carry that disclaimer by law.
- A caller tries to sign you up over the phone before sending you any written plan documents.
- The caller asks for your bank account number, Social Security number, card number or health information.
- The price is far lower than marketplace plans, or the offer is pushed as a "limited time offer."
- The website uses "Obamacare" or "Affordable Care Act" wording but is not your state's marketplace or HealthCare.gov.
- The plan caps what it pays or leaves out hospital, doctor or lab services.
What to do instead
- Hang up on a caller who wants your bank, card or Social Security number before you have seen the plan in writing.
- Ask for coverage details in writing. If they will not send them, walk away.
- Shop at HealthCare.gov or call 800-318-2596, or use your state's own marketplace if it has one.
- Check that the company is licensed with your state's insurance department before you pay.
- If you want to tell someone, the rule is: no plan papers in writing, no payment and no personal numbers.
If it already happened
Responding to one of these is common and understandable. These steps are what people usually take next.
- Buying one of these plans is easy to do. They are built to look like real coverage.
- If you gave bank or card details, call your bank or card company on the number on your card.
- Contact your state attorney general's office. Rhode Island residents can email [email protected].
- Report it at ReportFraud.ftc.gov.
Common questions
- Are all low-cost health plans junk plans?
- No. Rhode Island's attorney general says to watch for plans with extremely low monthly fees compared with marketplace plans, and for fine print saying the product is not insurance. Getting coverage details in writing and checking the company's license helps you tell the difference.
- Where do I shop for real coverage?
- The FTC points people to HealthCare.gov or 800-318-2596 to compare plans. In Rhode Island, open enrollment on HealthSource RI runs November 1, 2026 through January 31, 2027, at healthsourceri.com or 1-855-840-4774.
- How is this different from the search-ad warning on this site?
- Another alert on this site, Shopping for a Health Plan? Scammers Pay for the Top Search Result, covers paid search ads that pose as Medicare.gov or HealthCare.gov. This one covers calls and ads that sell plans which are not insurance.
Practice this safely
Practice asking a caller to send the plan details in writing, then hanging up when they push for your bank number instead.
Every story is fictional. There is no timer, no score, and no real message, payment, or account.
Tell someone
Copy a short note you can paste into a text or email. It names the scam, the next step, and this page. Nothing is sent from this site.
A Cheap Health Plan Says It Is Not Insurance? Walk Away A health plan with a very low price whose fine print says it is not insurance, or a caller who wants your bank or Social Security number before sending any plan documents, is a reason to walk away. On October 20, 2026, Rhode Island's attorney general warned that these "junk" plans may look like health insurance but may not cover the care you need. Hang up, ask for coverage details in writing, and shop at HealthCare.gov (800-318-2596) or your state's own marketplace. Read the full alert: https://endscamsproject.com/latest-scams/junk-health-plan-open-enrollment-scam
Where this comes from
These links open the published sources in a new tab. The destination is shown before you open it.
- Rhode Island Attorney General: Neronha warns Rhode Islanders about "junk" health plans ahead of open enrollment (October 20, 2026) (opens in a new tab)
riag.ri.gov
- Providence Business News: Neronha warns of 'junk' healthcare plans before open enrollment (October 20, 2026) (opens in a new tab)
pbn.com
- FTC: What to know ahead of Open Enrollment to avoid health insurance scams (September 28, 2026) (opens in a new tab)
consumer.ftc.gov
- Report fraud to the Federal Trade Commission (opens in a new tab)
ReportFraud.ftc.gov
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