Bartholomy explained that his bureau is providing consumers with tips on how to avoid fake health plans and gathering as much information as possible for the government agencies that have the legal power to deal with the illegitimate companies.

"We see this with not just the health care type issues but with any other number of scams, where it's literally what's in today's headlines becomes tomorrow's scam," said Bartholomy. "There has been so much written and so much said about the health care program and then at the same time, so little hard information that's gotten into the hands of people so that they can see how it's actually going to impact them. It's a perfect breeding ground for these types of individuals to go out and try to take advantage of that situation," he said.

Consumers should be cautious of plans that seem too good to be true, explains Quiggle. Illegitimate insurance organizations operate under the radar of insurance regulators, which enables people to verify the validity of a health plan.

"One phone call can save consumers a world of hurt. All they need to do is call the state insurance department and ask whether the plan and the insurance company are licensed to do business in the state," said Quiggle.

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