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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

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Sam's Club health insurance complaint

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If in doubt, please send a new question or ask for an update.

Q: I joined Sam's Club to buy health insurance at a lower price but the price they offered was the same as was offered by other agents. Is this a scam?

A: Yes, the price of health insurance is regulated by the state and must be the same to all residents regardless of membership in an association. The law specifically prohibits sales agents from advertising a lower price and presumably Sam's Club should be subject to the same laws as other sales agents. It seems to be a violation of law for Sam's Club to advertise or imply that insurance purchased through them is any less expensive than any other health insurance and it would also seem to be a legal violation to sell a membership fee based on this false advertisement. You should report the false advertising and the money you lost by buying the membership to your state insurance department. Most states allow you to submit a complaint online. See the contact information and links to State regulators at .


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