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In an ailing economy, it’s common to see a jump in scams as con artists try to separate the desperate from their hard-earned money. In our current downturn, confusion over health care reform and high unemployment are providing rich ground for scammers peddling a fast-growing crop of fake health plans.In 2009, regulators in 37 states told the nonprofit Coalition Against Insurance Fraud that, while fraud of all sorts is increasing, health insurance scams are the fastest-growing. “The increase in bogus health insurance was ‘much higher’ than in any other category,” says a coalition report. The Federal Trade Commission also is investigating the problem.

And while sweeping health care reform was signed into law in March, there is still plenty of confusion over the effects of the legislation.

“Health care reform is a gigantic, 2,000-page bill jammed with provisions that are phasing in over several years,” says Jim Quiggle, a spokesman for the Coalition Against Insurance Fraud, which provided details for the schemes described below. Government officials and insurers haven’t done a good job of telling consumers what changes to expect, Quiggle adds.

As people lose work and the health insurance coverage they had through their former employers, scammers are jumping in with an array of cheap, phony plans. These are often so cleverly marketed that it can be hard to tell you’ve been duped until it’s too late.

2 common scams

1. Insurance policies: Con artists sell partial or comprehensive health insurance coverage and then pay little or nothing on consumer claims.

The worse of these by far is fake medical insurance, says Mila Kofman, Maine’s superintendent of insurance. Earlier in her career, she was a research director at the Georgetown University Health Policy Institute, where her work exposed a boom in medical insurance scams. Health care reform should eventually lead to bona fide access to affordable health insurance, but such changes will happen over several years, Kofman says. Meanwhile, annual increases in health insurance premiums are driving people into the arms of scammers.

2. Discount cards: Consumers are lured into buying “discount programs” that appear to reduce the costs of medical coverage. The bogus programs promise — but don’t deliver — discounts on prescription drugs, doctor’s office visits, hospitalizations, dental or vision services, tests or other medical procedures.

Consumers can also be tricked into thinking they’re purchasing broad coverage when all they’ve bought is a program that gives discounts on certain services — and only among participating providers. Further, the provider lists dodgy discount card companies issue can be inaccurate or provide false information.

To be sure, many discount health cards are legitimate — and scammers do what they can to blur the difference between good cards and bad. Below, you’ll find tips for avoiding such traps.

The costs of getting taken

If you do find yourself the victim of a health care scam, you can be hurt in many ways — and the financial wounds can take a long time to heal.

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