24th
August
2005
(*note added 2007 – this blog entry was posted in Aug ‘05, and has taken on a life of it’s own. It’s amazing how many people are wary of Mega) -
Today, someone emailed me and asked me this -
Obviously I noticed your posting on megainsurance.
Would you please tell me your experiences? I am in a financial hole, and am scheduled to attend their training real soon. I really appreciate your help!!
Thanks again,
Jeff
Here’s my answer -
(*at that time – Based on the fact that I had sold Mega policies in Oregon)
Well Jeff, here’s the scoop. Playing the odds for most people, the insurance is not really that bad. BUT, just knowing theres the tiniest possibility that someone you sold to, (or worse yet, someone you know & love), actually does develop diabetes, or needs an organ transplant, or develops any cancer, or anything really bad, and you won’t sleep at night unless you stick your head in the sand.
On Mega Life and Health, there’s no “maximum out of pocket”. That’s the key ingredient missing. 80/20 on a $75k hospital stay, after your $5,000 deductible can set you back 20 grand or more! And if it’s a quarter million or more incident? forget it, you’re bankrupt.
Take a Mega health policy to your current (or any) competent agent and ask them what’s wrong with it. If only I had done that first! You know, I actually asked for one over and over, and never did get one to look at until my own came in the mail. By that point, I was selling it and making money, so who cared?
To have saved some families a few bucks a month, but knowing it could cost them $55,000 on a $90,000 hospital bill is horrible. The only consolation was that once people found out how it worked, they left. I’m so glad none of them kept it very long…
None of my customers ever called me like that, but I saw two good sales people get devastated by calls like that and leave in two months, right after I was the “Rookie of the year” in my district. As soon as I learned what we were really selling, I just quit producing. Then I was dead weight for a few weeks and finally left.
Those that are successful actually believe the product is as good as anything else out there, and that all insurance has limits. Well, that’s true, and playing the odds, this insurance is not that bad. 90% of all hospital bills are still under $50k . That’s not a chance I was willing to take.
The thing is, I think they just don’t know what they’re really selling and they don’t know the competition. They only know what they’re told, because none of them was in the insurance business before.
It wasn’t until I went to a general agency for 4 months that I saw how REALLY full of other holes Mega was. Plus, I had been made to look stupid. ..That was the final straw.
I had to stand there while a customer called their insurance company and proved me wrong, calling me a liar. I was told many times that “Fortis doesn’t cover you for injury on the job if you’re self employed” and that was a big selling point for business owners. I always mentioned that sentence in my sales pitch because people were shocked.
Today, I’m with Fortis for coverage that’s tons better, 6 million limit, and has a $2500 per incident 100% accident rider, and a maximum out of pocket of $8000 in any calendar year! That’s even for a heart transplant! It’s amazing what you learn selling insurance…
At Mega, when a client got hammered, the bosses would just say “Well Scott, all insurance has limits. The facts and coverage are laid out for the customer to read, and they could have canceled before she had a stroke and lost their home…”
Well that’s true, and that’s why it’s a legal business, but that doesn’t make it right.
Here’s a long list of the crap that Mega has pulled and why so many people hate them. Decide for yourself.
I really hated the insurance business anyway.
* Update 2007 -
To be clear, I have not been a Mega agent since 2003. I’m an internet marketer, and I I do make a couple of bucks if you get a quote for your zip code at Ehealthinsurance
Other stuff I've written:
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Jeremy says:
Scott, thanks for maintaining this forum. I am currently a relatively new rep for Mega, and the postings have raised some serious concerns for me. It is even more worrisome to consider the fact that we are now entering the Senior market space with a Medicare Advantage Plan.
I can see the earning potential is great with this company, but not at the expense of my conscience and peace of mind. I have so many thoughts and questions in my head right now…if there are any former or even current reps who could contact me I’d really appreciate it. I can be reached at doinitwell42@hotmail.com.
Blessings to all!
Scott says:
Wow Mega is getting into senior products? I know some very nice and very honorable people that sell for this company, but that scares me…
Wendy says:
Scott:
I recently left HealthMarkets and became licensed in property & casualty. I joined a local company that has been around for 95 years. I can’t tell you how wonderful it is when people say that the company I now work for has “a stellar reputation”. I didn’t have problems with Mega/Cornerstone America/Midwest National Life Insurance of TN/HealthMarkets when I was working there, but right after I left I started getting calls from customers who said their claims had been denied (3 in the first month I left).
Now, the company is coming after me for advances. Their math is very funny. Subtracting outstanding commissions from advances, I owe them about $500. They offered me the chance to pay them about $1700 and they would forgive me the rest???. I pointed out the disparity, so they say, but you only qualify for 95% of your remaining commissions, so it’s actually $700. They aren’t willing to make a written agreement to accept payment for this amount within 45 days. Now they demand $3800.
I wasn’t an amazing agent, but I was top sales agent in my district this spring and qualified to win a trip to Cancun. I didn’t even accept all of my advances.
Have you heard from any other agents that are getting squeezed by their credit department?
Scott says:
Yes, what likely makes their math seem funny is the fact that so many people cancel so quickly, and they want that money back as well, since you didn’t really earn it. The number goes up as more people drop off.
I paid the money to shut them up right away upon leaving, maxing out a credit card.
Congratulations on your move…
Victoria Fuller says:
I had my health insurance with Megalife for several years and my doctors and I have never experienced any insurance company with policies like theirs. My doctors think that they are a scam operation.
I have cancelled my insurance with their company and it expired Nov. 1st, 2007. If you do an internet search of their name you will see that many people have filed suits against them, and they have been barred from practicing in the state of Washington in 2004. I have recently discovered that Mega Life was bought by Health Markets.
In the research that I have done I have found out that that is what fraudulent companies do, they change their identity, as a way to hide from their dark past and to trick people into thinking that it is not the same company. Mega Life, UICI, and Mid- West National are sister companies all owned by Health Markets.
I am a self-employed artist. Because I am self-employed my rates are higher than those of group insurance. I was told that I could get a better rate and coverage if I was in a group. Someone recommended that I join The National Association of The Self Employed in order to get a group rate. I have done some research into Megalife and this is some of what I have found out. Mega Life and Health Insurance is part of the NASE, or the National Association for the Self-Employed.
The NASE claims that they were established to allow self-employed individuals or those who work for small companies to join together in a large group so that they have better buying power when seeking health insurance policies for themselves and their families.
An NASE representative claims that the organization researches insurance options and provides the best deals available to their members. However, the NASE is not an independent organization at all, but merely the marketing arm for Mega Life and Health Insurance and associated companies (now Under Health Markets).
I have since discovered that Mega has dealt with a lot of class action suits because it’s been selling policies through this front organization that many states find illegal. The organization has not conducted any research into other insurance options for its members. When I have called NASE to complain about Megalife’s practices and explain that the policies are bad and that they are scamming their members they don’t seem to care. They say that they have nothing to do with it and to contact Megalife.
When I have questioned Megalife about their practices they tell me that they have been sanctioned by the Illinois Department of Insurance, where I reside, and that all of their practices were developed through that agency with their blessings.
When I was sold the policy, I was told that the deductible was $1500 period. However, I later found out that the deductible was $1500 per occurrence…not per year. Then when I have tried to investigate further about what is really going on, I was told that there is a period of confinement, which is 180 days, which means that whatever was put toward my deductible expires after 180 days and then goes back to being $1500.
When I told them that my agent said that it was per year and didn’t tell me about the period of confinement, they say that it doesn’t matter because it is stated in the actual policy. Since it is the policyholder’s responsibility to read and understand the contract before signing it, the insurance companies generally get away with these questionable practices. Megalife is an insurance company that steps over the line between confusing legalese and outright deception.
The wording of their policy is so confusing and unorthodox, so that a policyholder and often times the agents themselves don’t understand what it means. Under further investigation I have found that their agents don’t tell the clients that any money towards the deductible will expires in 180 days and the deductible will be at $1500 again after that time. My agent didn’t tell me. Also he didn’t tell me that I would be limited to two visits per quarter (which is every 3 months).
If, for instance, I had to go back to the same doctor for a follow up visit within the three months, but then I also had to go to see a doctor, say a gynecologist or a dermatologist about an entirely different matter, then the third visit wouldn’t be covered or a 4th or a 5th. I have ended up most of the time paying for most of my medical bills and visits, because of these loop holes.
When I realized how the policy really was and how little they covered I wanted to change the deductible amount. They told me I had to fill out a form to change it, and later, after I got the deductible amount changed, I was informed that it was actually a brand new policy and that everything that they had covered when I had the other deductible amount was now considered preexisting and that they wouldn’t cover those things anymore.
Also, I got a call the other day from the agent who sold me the policy apologizing and said that they had also defrauded him and told him things that weren’t true. They kept raising my rates on me every 5 months, soon after I joined, and they told him that they would keep it at that same rate for a year. He said that what they did on many levels was fraudulent.
My policy starting at about $350 was raised to $573 a month and for that I got very little. I have since found that I can get much cheaper and much better policies. This company is hurting a lot of people and should be shut down.
Victoria Fuller
Dana Johnson says:
Victoria, I am so glad I ran acrossed your blog on the Mega Life Health Insurance and the NASE. I was considering getting a policy through this company. Thank you for your input.
Dana Johnson
Asim Zubair says:
I Had Purchased a policy with mega insurance through
one of NASE’s agents and I got stuck with a $1000 bill which they applied to my deductible and what I found out after I complained to the bureau of insurance in Alabama is that NASE has established a trust in order to protect themselves against claims.
Frank Cantelmo says:
I am a new agent for NASE/AFS/MEGA etc. here in Massachusetts. I would be interested if anyone on this blog has had bad (or good) experiences with MEGA here in the Commonwealth. For those who don’t know, Massachusetts is a guaranteed insurance state…you can’t be denied/turned down for health insurance and you can change companies every 30 days if you like. I’m including the most recent Mass. DOI report which is for 2006 (2005 statistics) http://www.mass.gov/Eeohhs2/docs/dph/patient_protection/internal_grievances_06.pdf
I don’t see any grievances filed against Mega. Comments specific to Massachusetts?
Thanks to all,
Frank Cantelmo
Wayne says:
All Excellent Arguments for Universal Healthcare
which will also take care of the Ripoff Insurance Companies
Deziner says:
Mega into the senior market – wow thats a scarry thought.
AARP needs to investigate this company, they are white collar crooks. I have had their insurance for years now and can wait to find a way out. They raise my primeium, every 6 months and im up to $3100 now a quarter.
Insurance is a nightmare. And this company makes it even worse. Everytime i go into the hospital they raise my insurance.
Stefi B in Oregon says:
Scott…..Do you have any idea how many people you have helped? As consumers, we can never know enough about health insurance and this information gives people the questions many don’t know to ask. That’s what is so sad…not knowing the questions certainly makes many of us easy prey and there is sooo much at stake.
I can’t thank you enough. I so appreciate the energy you’ve spent to suggest consumers learn more. You are neato!
Scott says:
I’m glad you found it useful
Rene says:
Hi,
Just wanted to say that I got insurance with Mega/NASE last year, after an agent came over to my house to “explain” it all to me. I told him my main reason for getting insurance was that my husband and I had planned on getting pregnant in the near future and wanted to make sure we would be covered. He assured me it was a great plan for that, showed me the deductible, etc.
Well it comes time for me to get an ultrasound and the standard blood tests and I find that the hospital calls Mega and Mega says I’m not covered at all! And because I choice an in-network hospital to get the ultrasound, the money I had to pay out of pocket (over $500.00) does not go at all to pay down my deductible, because I’m using a midwife and she is considered out of network (which I had already explained to the NASE guy).
So anyway, I’m now almost 8 months pregnant and after finally realizing how little Mega is going cover (I have a 3K deductible and they only cover 70% after that, and that’s ONLY for the birth, no other standard coverage on tests, ultrasounds, etc), I’m now frantically trying to see if I can be covered under the Oregon Health Plan.
So, from my experience, Mega and NASE (I’ve NEVER once used a benefit they have offered by the way, it’s either way too confusing or a scam in my opinion) are both companies that do not have your best interest in mind at all, and the insurance agent who signed me up, well I’m amazed he can sleep at night. He sold me a policy he must have known would be pure crap to me, and he did it all with a smile. As soon as the baby is born, I’m switching to some other company in Oregon.
Scott says:
To be fair to Mega, I was trained to tell people that if someone was planning on having a baby, that it was definitely not the right choice for them.
It sounds like your agent was being greedy, and saw an easy commission.
margo w says:
victoria, i met with a salesman for mega life and health insurance yesterday evening. his explaination of the coverage for which i was interested was confusing and he insisted that i give him a check at the time. i told him to give me one day to think about. thank the Lord i did! igot up an hour ago, and the holy spirit told me to google mega life and health insurance. when i did, i found out that the bbb gave them the lowest rating and a laundry list of consumer complaints againsy the company, including your complaint. thank you for sharing your experience. you and the other complaintents spared me a lot of heart ache and financial distress.
RANDY S says:
THANK YOU ALL FOR THE EYE OPENING EXPERIENCES AND FIRST HAND ACCOUNTS WITH MEGA INSURANCE! I WAS CONTACTED 5 DAYS AGO BY ONE OF THEIR SALESPEOPLE IN REDMOND OREGON, AS I WAS IN THE MARKET TO CHANGE MY INSURANCE PROVIDER DUE TO A 40% RATE INCREASE.HE TOLD ME SEVERAL TIMES THAT MEGA WAS IN THE SAME GROUP OF PPO’S AS LIFEWISE, PROVIDENCE AND REGENCE.SOUNDED REALLY GOOD!!I CALLED THE HOSPITAL IN BEND AND THEY SAID THAT MEGA WAS NOT AND WOULD NOT BE AFFILIATED WITH THEM! THAT TOLD ME TO LOOK DEEPER AND THAT IS HOW I FOUND THIS SITE AND THEIR APPALING BBB RATING IN OREGON. THANK’S AGAIN FOR THE HEADS-UP.
JordanL says:
After taking out a Mega health policy in 2000, through NASE, my husband had emergency open heart surgery in Jan ‘07. Of a $257,000 hospital bill, Mega paid $28,800. Everything that was not the ‘room rate’, surgeon, or anesthesiologist went under “Medical Miscellaneous,” on which Mega has an $18,000 payment limit. The “agent” who sold us the policy indicated our maximum out-of-pocket expense for catastrophic surgery would be our deductible + 20%.
I am reporting them to the State of California Insurance Commissioner and looking for an attorney. This has bankrupted us.
Diane Osman says:
Is there a class action lawsuit against Mega Life & Health? We own a small business and got Mega through NASE. The insurance is worthless as far as I am concerned. I can’t imagine why Nase does this to small businesses. I just had a colonoscopy & they charged almost $10,000 and Mega paid $1500. These companies screw each other constantly and put us in the middle. My daughter died of Leukemia and Golden Rule sued us rather than paying for her bone marrow transplant so I am quite used to what slimeballs insurance companies are. Anything I can do to Mega to join in a lawsuit or sue them myself–I am ready and willing. The latest joke is when I went to fill my Nexium–I have a discount card from the pharmaceuitical co. so it should cost $30-40 max. They wanted $175 per my insurance co. My husband won’t look into it so I have to. Please help. Thank you. Diane
Scott says:
There’s no class action suit that I’m aware of, but in my opinion, there should be!
Paul says:
I just purchased a policy from Mega but am with the 72 hour window to cancel and am going to be taking everything to an agent here in town to look over and tell me about it. Thank you for this blog because now I am going to do some research and find out for myself if I should cancel this policy immediately. The agent that sold me was not a slime ball and has been with them for seven years.
He went very slowly over everything and show me max oop in a calendar year of $4,000 and showed me where NASE paid for things from the association as well as how Dr. visits were covered which is a $125 pool of money every 4 months. I am calling my doctor’s billing to see if they have ever had a problem with this company. Thank you to all that posted on here both positive and negative.
I have experience with Goldman Sachs and just because they are an investor does not make Mega an angel. If MEGA makes $$ then a company like Goldman Sachs is going to be all over it ,,,
Victoria says:
Hi Paula, run away from this plan as quickly as possible. Please read my post, here on this site, posted Nov. 6th 2007. It is a scam operation and the only thing that will happen is that they will take your money and you will get no benefit from their insurance plan.
Diane Osman says:
Just what I have experienced! Mega loves to take your money and give nothing in return. A colonoscoy just cost me over $6,000! I went to pick up my prescriptions and they informed my prescription amount has expired for the year! And to think this was recommended by NASE (National association of the self employed). When I have contacted NASE, they refused to talk to me stating that they are “separate” from Mega. Both are a bunch of crooks.
JordanL says:
Paul, I agree with Victoria, run and don’t look back! See my post above from a few months ago.
BTW, I have heard that Mega and the NASE are one and the same – NASE is the phony ‘organization’ they created to be able to sell this is a ‘group’ plan. I was told for eight years that membership in NASE was required, to keep the health ‘insurance.’ Now, in a letter from Mega in response to my assorted complaints, they say NASE membership is optional. It is required by law in some states that you be a member to obtain the policy, but you can cancel after that. I’m going after NASE for a refund of my dues – it won’t happen, but I have to try.
Have you all seen this – big fine levied against MEGA by the National Association of Insurance Commissioners:
http://www.naic.org/Releases/2008_docs/healthmarkets_fine.htm
I can only hope that a class action suit is not far behind.
Paul says:
Policy has been canceled and I purchased from a reputable company and got dental as well for much less than the crooks at MEGA!
Victoria Fuller says:
HI Paul, sorry I called you Paula, Don’t know why I transposed your name in to the feminine. Good that you cancelled, smart choice.
Rae says:
Mega is a total rip off! Please RUN. I signed up in Sep 08. I’m young and healthy, so is my 6 year old son. A couple preventative visits have run us up $700! This is not a plan, I’m changing ASAP and they should be sued.
Diane says:
Hi Scott,
My Boyfriend had Mega insurance for about 3 years. Never had to use it for anything..(good thing he didn’t..) but i hated the company always raising the amount a month. We were paying 189.00 plus 10.00 on top of that for fee. So we paid about 200.00 a month just for my boyfriend. His deduc. was 5,000. I am just glad you are sharing this with all of us. I also don’t see how they sleep at night. But i believe in Karma..so..it’ll come back to them..
Have a Great Day, Scott
Thank you!!
Diane
AIC says:
Thanks for your useful forum; I came to here about one caliber insurance company called American Insurance Coverage (A.I.C), which have some interesting portfolios and strides particularly in health insurance. The user’s feedback is amazing.
David says:
I purchased Mega Policy in Feb. of 2007. Unfortunately, I just learned the hard way. I was misled and lied to by the agent. Now, I face some large medical debt. I am interested in suing this company. Has anyone in Oregon been successful in suing Mega Life and Health? Is anyone out there interested in a class action suit. It seems to me that there are enough of us to get something going.
Peggy says:
I too have Mega policy since Feb 2006 (Feb must be a big ins sign up month eh?) Like others here – I needed the insurance for doc office visits, prescriptions, dental, vision, and the ol just in case hospital coverage. What a rip-off and I am canceling finally this month and hope the auto deduct (which they require period) doesn’t happen this month as I can’t afford it. The agent lied/misled me as well – i didn’t realize all this till read your blog recently due to Assurant reps crawling out of the woodwork to sign me up and soliciting me by phone. The prescription coverage sucks. The doc office visits of which I also bought a rider only pays about $40 twice a quarter and the office visit fee is $120 – that and some dental is all they have paid out on very measly i might add and very low amounts for prescriptions so what a profit racket they have and with that deductible thing every 180 days apparently I never hit the deductible then so they never paid the higher percentage. Calls to the agent of course are ignored – he never returns my calls. I also was told NASE was required to have Mega and have never once in 4 years used any service from them – haven’t even got the dumb magazine in months that i never read either! I’m in KS and I saw the ins comm got some settlements out of them but don’t know what that is. I can’t even find how to cancel the NASE membership either. I think I will spend the $25 to stop payment by the bank just to be safe that the auto debit doesn’t get done – i have a feeling mega & nase will drag their feet on stopping it at their end just so they can get a month or two more out of me. Makes me ill to see the amount of money I spent for crap. I would have been better to HSA it or just plain put it in a savings account period – i would of had a nice little sum to tide me over during this economic hardship.
LEONARD ACOSTA says:
I AM ATTEMPTING TO TAKE THE NATIONAL ASSOCIATION TO SMALL CLAIMS COURT IN CALIFORNIA, BUT ARE UNABLE TOO CAUSE I CAN NOT FIND ADDRESS FOR THEM IN CALIFORNIA, CAN YOU HELP ME? AND FURNISH ME WITH CONTACT INFORMATION, THANK YOU FOR YOUR CONSIDERATION AND TIME. LEONARD ACOSTA
Victoria Fuller says:
Mega Life and Health Insurance Co, is a scam. Peggy, The same thing happened to me. It is the worst coverage that anyone could get. They take your money and give very little coverage. The agents Lie, or are ignorant and just tell the clients that they sell to what they are told by Mega Life. They never told me that the deductible would renew every several month, which means that you never ever really meeting the deductible, so you end up paying the full amount. There are many law suits against them, yet they continue to practice their deceptive practices. NASE is a false front to get people to think that they are part of a group getting discounted health insurance when in fact it is just a marketing branch of Mega Life.
This Insurance company is run by Con Men. I now have real health insurance coverage by a reputable company. I suggest everyone quit Mega and do the same.
Asim Zubair says:
Dear Scott:
I have cancelled my health insurance policy but i would like to go after the agent with a lawyer and make her pay out of her pocket for the scam policy that i thought was good. Any ways on how to approach the agent who sold me the Scam policy since she is liable for the claims issued against that policy. Please let me know.
Scott says:
I really can’t give legal advice, but I know how you feel, i’m sorry…
athena la roux says:
that agent is registered with the state.check your state insurance dept.
Not sure if NASE requires E&O insurance, but solid companies do. I carry two policies.
the agents are lied to in training, so when people cancel, they get that commission taken back. The agent is liable if you had a LOSS that was explained as covered.
Rasheedah Hasan says:
A few years ago I was searching for a new policy for my parents who are both self-employed. As you can imagine, the premiums are not nice for the self-employed or small business owners. In any event, after many discussions and lots of google searches, I came across a MEGA rep. She visited with my mom and dad and seemed so very kind and sincere, having shared some of her own experiences. My parents are generally healthy and they were most interested in preventive care, not so much the major medical. In any event, after a year of ever increasing premiums and what amounts to thousands of dollars in medical bills, my parents learned just how terrible MEGA coverage was. Finally, in summer of 2009 my mom dropped their coverage and was able to get insurance elsewhere. My dad soon followed in August. I learned they had started to debit under 2 separate entities. So, I called them to cancel both. I will spare the details of how I got the one account to finally stop drafting. Unfortunately, after several attempts in 2009, I am still attempting to stop them from drafting for a policy my parents no longer have. Their business ethics leaves quite a bit to be desired.