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PRINCE GEORGE’S COUNTY
Insurance Agent Accused of Defrauding Seniors of $280,000
By Ovetta Wiggins
Washington Post Staff Writer
Friday, June 12, 2009
Martha Cunningham owned a $417,000 home in Prince George’s County and held $61,000 in annuities before she met Edward Hanson four years ago. Today, the 79-year-old widow is essentially broke and inundated with debt.
Hanson is accused of swindling Cunningham and a Bowie couple in their 60s out of $280,000, by persuading them to write large checks to him for services he never provided, Prince George’s County State’s Attorney Glenn F. Ivey said at a news conference yesterday.
Hanson, 39, of Pikesville, Md., was charged with six counts of mortgage fraud, insurance fraud, theft and exploitation of vulnerable adults. If convicted, he faces up to 90 years in jail.
“These are folks who were victimized innocently,” Ivey said, referring to Cunningham and Bobby and Lucille Mackey of Bowie. Ivey promised “tough enforcement” of laws that protect the elderly and others against fraud.
Ivey said the prosecution of Hanson is the first under a state law enacted last year that established a separate category for mortgage fraud and strengthened penalties for convictions.
Efforts to reach Hanson were unsuccessful.
“It’s important that citizens know that we take these types of crimes seriously,” said Bowie Police Chief Katherine Perez, whose department took the initial complaint. “When people try to scam you, come forward so we can bring about justice.”
In addition to the Bowie police, the Secret Service, the U.S. Department of Housing and Urban Development and the county’s economic crime unit took part in the investigation.
Cunningham said she realizes now that her first mistake was trusting Hanson, an insurance agent, who introduced himself over the phone. He later would stop by her house, saying that he had other clients in the area.
When she told Hanson in January 2008 that she was interested in a reverse mortgage on her Bowie home, Hanson said he could handle the paperwork for her. Cunningham needed money, and with her home paid off, considered a reverse mortgage the best way to tap the equity in her home. Cunningham received a $212,000 payout.
Cunningham said she also told Hanson that she was interested in purchasing long-term health insurance. He started asking her for large sums of money, she said, to pay for the policy.
“I don’t know how I didn’t catch on,” said Cunningham, who wrote 21 checks to Hanson in March 2008 for more than $20,000. Three months later, she wrote 10 checks for almost $14,000.
She never received the policy. By the end of the year, Cunningham had given Hanson more than $200,000 from her reverse mortgage funds and additional money from her bank account. She owes about $10,000 more on a Discover card.
Bobby Mackey, 69, said Hanson took about $1,800 from him and his wife, Lucille, 67. He said Hanson told them to write checks for an insurance policy that they never received. “I’m not devastated, but it’s just the idea of him pulling such a rotten trick,” Mackey said.
Source:
http://www.washingtonpost.com/wp-dyn/content/article/2009/06/11/AR2009061103898.html
By: JO CIAVAGLIA
Bucks County Courier Times
Know your rights
The Health Insurance Portability and Accountability may also give you a right to purchase individual coverage if you have no group health plan coverage available, and have exhausted COBRA or other continuation of coverage. These are called conversion plans.
The HIPAA law guarantees access to individual insurance policies and state high-risk pools for eligible individuals. They must meet all of the following criteria:
+ Had coverage for at least 18 months, most recently in a group health plan, without a significant break;
+ Lost group coverage but not because of fraud or nonpayment of premiums;
+ Are not eligible for COBRA coverage; or if COBRA coverage was offered under federal or state law, you elected and exhausted it
+ Are not eligible for coverage under another group health plan, Medicare, or Medicaid; or have any other health insurance coverage.
How Pennsylvania Conversion rights work
In Pennsylvania, if you’ve lost your employer group health plan from an employer of any size, you may be eligible to convert that coverage to an individual health insurance policy. Not all employer group health plans are required to offer you this individual conversion plan policy; check with your employer’s insurance company to see if you are eligible under the state conversion rights.
Among the eligibility requirements is that the employee has to be covered under an employer’s group insurance plan for at least three months prior to termination and if COBRA benefits are available, the person must apply and exhaust the benefits first.
Also there is a 31 day deadline to submit your information or you will lose your state conversion rights.
A benefit under the state conversion policy is that an individual can backdate health coverage to when the group coverage ended and medical claims can be submitted to an insurer for consideration.
How HIPAA conversion policies work
If you are not eligible to extend group health coverage under the Pennsylvania conversion rights, you can apply for a HIPPA conversion/alternative mechanism policy. In Pennsylvania, only Blue Cross Blue Shield companies sell HIPAA conversion policies and offer two policies: a basic and one that is more comprehensive but neither plan covers preventive services; there is no preexisting medical condition exclusion as long as the individual has had group coverage for at least 18 months and enrolls before there is a break in coverage of 63 days or more. To qualify, also a person had to be enrolled in a group coverage health plan for the prior 18 months.
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Source: U.S. Department of Labor, Pennsylvania Insurance Commission, Independence Blue Cross
Hippa Conversion policies available through Independence Blue Cross
HIPAA Continued Coverage Option 1 (Hospitalization + Medical/Surgical + Major Medical)
-Hospitalization: $500 Copayment for Inpatient Admission or $75 Copayment per Outpatient Service
-Medical/Surgical UCR 100: After a $250 calendar year deductible*, no out-of-pocket costs for covered services when treated by a participating Highmark Blue Shield Provider. For a family contract, only three members are required to satisfy their individual deductible in one contract year for the family deductible to be met
- Major Medical: $500 individual/$1000 family deductible, 20% coinsurance after deductible up to plan’s lifetime limit. Coverage includes home and office visits, prescription drugs, ambulance services, durable medical equipment. The lifetime maximum benefit begins at $35,000 per year, and increases $50,000 for each year of continuous enrollment up to a maximum of $60,000
HIPAA Continued Coverage Option 2 (Hospitalization + Medical/Surgical only)
Hospitalization: $1,000 Copayment for Inpatient Admission or $75 Copayment per Outpatient Service
Medical/Surgical UCR 100: After a $250 calendar year deductible*, no out-of-pocket costs for covered services when treated by a participating Highmark Blue Shield Provider. For a family contract, only three members are required to satisfy their individual deductible in one contract year for the family deductible to be met
