If you're looking for a
home-based business that can help you pull in $20,000 to $45,000 a
year using your computer, a work-at-home opportunity doing medical
billing may sound like the perfect choice. But before you part with
your money, consider this: The Federal Trade Commission (FTC) has
brought charges against promoters of medical billing opportunities
for misrepresenting the earnings potential of their businesses and
for failing to provide key pre-investment information required by
law.
Medical Billing Scams
Ads for medical billing business
opportunities appear on the Internet and in the classified sections
of local newspapers and "giveaway" shopper's guides. In the
"Help-Wanted" classified sections, the ads may appear next to
legitimate ads for hospital medical claims processors, leading
consumers who respond to think they're applying for a job, not
buying a business opportunity.
The ads lure consumers with
promises of substantial income working from home full- or part-time
- "no experience required." They direct consumers to call a
toll-free number for more information.
If you call, a sales
representative will entice you to sign up by telling you that the
processing of medical claims is a lucrative business, that doctors
are eager for help with electronic claims processing, and that you -
even without any experience - can do this work from the comfort of
your home.
Medical billing scammers charge a
fee of $300 to $500. In exchange, they claim to provide everything
you supposedly need to launch your medical billing business: the
software program to process the claims and a list of potential
clients.
But the reality is that few
consumers who pay for medical billing opportunities find clients or
make any money, let alone earn the promised substantial income.
Competition in the medical billing market is fierce, especially for
those who are new to it. Many doctors' offices process their own
medical claims. Doctors who contract out their medical billing often
use established firms, not individuals working from home.
Promoters of fraudulent medical
billing opportunities are not interested in helping consumers,
either. They only want their money. Many times, the client lists
they provide are based on out-of-date databases of doctors who
haven't asked for medical billing services. The software they send
may not work or may not have been properly authorized and so is
useless. And the money-back "guarantees" often prove worthless. Even
after making repeated calls to the promoter or complaining to their
credit card companies, government agencies or consumer groups, only
a few people actually get refunds.
How to Protect Yourself
To avoid losing your money to a
bogus medical billing business opportunity, the FTC advises you to:
-
Ask the promoter to give you
the names of many previous purchasers so that you can pick and
choose who to call for references. Make sure you get many names
from which to choose. If the promoter provides only one or two
names, be careful: The contacts may be "shills" - people hired to
give favorable testimonials. Interview the references, preferably
where the business operates, to get a better sense of how the
business works. Ask for the names of their clients and a
description of their operation.
-
Consult with organizations for
medical claims processors or medical billing businesses and with
doctors in your community. Ask them about the medical billing
field: How much of a need is there for this type of work? How much
work does medical billing entail? What kind of training is
required? Do they know anything about the promotion or promoter
you're interested in?
-
Check with the state Attorney
General's office, consumer protection agency and the Better
Business Bureau in your area and the area where the promoter is
based to learn whether there are any unresolved complaints about
the business opportunity or the promoter. While complaints may
alert you to problems, the absence of complaints does not
necessarily mean the company is legitimate. Unscrupulous companies
may settle complaints, change their names or move to hide a
history of complaints.
-
If the medical billing
opportunity sells another company's software, check with the
software company to find out whether company representatives know
of any problems with the medical billing promoter.
-
Consult an attorney, accountant
or other business advisor before you sign any agreement or make
any payments up front. An attorney can review the promoter's
contract and advise you on how best to proceed.
Where to Complain
If you think you've been
defrauded in a medical billing business opportunity scheme, contact
the company and ask for your money back. Let the company
representatives know that you plan to notify law enforcement and
other officials about your experience. Keep a record of your
conversations and correspondence. If you send documents to the
company, send copies, not originals. Send correspondence by
certified mail - and request a return receipt - to document what the
company received.
If you can't resolve the dispute
with the company, file a complaint with:
-
the Federal Trade Commission.
Call 1-877-FTC-HELP (1-877-382-4357) or log on to
www.ftc.gov.
-
the Attorney General's office
in your state or in the state where the company is located. The
office will be able to tell you whether you're protected by any
state law to regulate work-at-home programs.
-
your local consumer protection
offices.
-
your local Better Business
Bureau.
-
your local postmaster. The U.S.
Postal Service investigates fraudulent mail practices.
-
the advertising manager of the
publication that ran the ad. The manager may be interested to
learn about the problems you've had.
The FTC works for the consumer to
prevent fraudulent, deceptive and unfair business practices in the
marketplace and to provide information to help consumers spot, stop
and avoid them. To file a complaint or to get free information on
consumer issues, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or
use the complaint form at www.ftc.gov.
The FTC enters Internet, telemarketing, identity theft and other
fraud-related complaints into Consumer Sentinel, a secure, online
database available to hundreds of civil and criminal law enforcement
agencies in the U.S. and abroad.
April 2002