Consumer Alert: Attorney General Neronha warns Rhode Islanders about “junk” health plans

Consumer Alert: Attorney General Neronha warns Rhode Islanders about "junk" health plans

Published on Thursday, November 06, 2025

Attorney General Peter F. Neronha is advising Rhode Islanders about limited benefit, or "junk," health insurance plans which may appear to provide health insurance coverage, but do not provide the same coverage as regulated health insurance plans.

"Consumers have enough to worry about without wondering whether their health insurance is legitimate or not," said Attorney General Neronha. "With skyrocketing premiums and the failure of the federal government to extend tax credits, health insurance has never been more expensive, leaving consumers searching for cheaper alternatives. With open enrollment now underway, Rhode Islanders may see more advertisements promoting fake or low-value health insurance plans. As long as there is money to be made from health care, there will be those who are ready and willing to exploit consumers to turn a profit. I urge consumers to educate themselves before making any health insurance plan purchases to ensure that the product is both legitimate and adequate for the needs of you and your family."

Limited benefit or "junk" plans are products that may appear similar to regulated health insurance plans, but are not insurance and do not guarantee coverage of medically necessary services. The National Association of Insurance Commissioners urgesthat consumers be aware of certain types of "junk" plans including Health Care Sharing Ministries (HCSMs), discount plans, and risk-sharing plans. These plans are known to be commonly advertised across all forms of media in Rhode Island.

What to look out for:

• Disclaimers that the product being sold is not insurance. Read the fine print. Marketing materials for "junk" plans may claim they lower the cost of medical care, but by law must contain disclaimers which state that they are not insurance and are not sold by licensed insurance companies. Always ask for coverage details in writing and if they won't provide them to you, walk away.
• Misleading names or logos. Some "junk" plan websites may include health insurance related phases such as "Obamacare" or "Affordable Care Act" to trick consumers into believing they are shopping for coverage on legitimate sites. The Rhode Island Department of Business Regulation maintains a listof licensed and approved insurance companies, and consumers can also search the NAIC registryto check the legitimacy of a company.
• Telemarketers, robocalls, and certain forms of internet marketing. Beware of callers who reach out to you trying to sign you up for health plans over the phone without first providing you with written plan documentation. Do not provide telemarketers with your bank account number, your social security number, your credit card number, or your personal health information. If you are asked to provide this information, hang up. Avoid clicking on any pop-up ads seemingly related to health insurance and avoid websites that first require you to create an account or enter personal information before you can see plan information.
• Coverage caps, broad coverage exclusions, or products that offer coverage for short or limited durations. Some "junk" plans include limits or caps on coverage after a certain dollar amount, or may exclude important types of health care services like hospital, physician, or laboratory services. Consumers should also be aware of products that offer coverage for only temporary or limited periods of time.
• Very low-priced premiums or claims about "limited time offers". Consumers should be wary of off marketplace plans that offer extremely low monthly fees compared to plans found on HealthSource RI.

Open enrollment on HealthSource RI began on November 1, 2025, and runs through January 31, 2026. Consumers can shop for approved coverage on healthsourceri.comor by calling 1-855-840-4774.

If consumers believe they have purchased a fraudulent plan they should contact the Attorney General's Office at [email protected]. The RIPINCall Center also offers free support to any Rhode Islander who needs help accessing healthcare or health insurance and can be reached at 401-270-0101, or by email at [email protected].

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