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According to the US Census Bureau, there are nearly 20 million self employed people in the United States and that number is expected to continue rising. It’s hard enough to make ends meet when you’re self employed, but finding healthcare insurance that you can actually afford may prove to be an even tougher proposition.

Insurance companies realize this is a growing market and have capitalized on it by offering lower cost policies to the self employed. Unfortunately, many have policyholders soon discovered that their coverage was not what they were told it would be and was far from adequate.

The companies, MEGA Life and Health Insurance Company and Midwest National Life Insurance Company of Tennessee, have been using subsidiary groups that fool the consumer into thinking that they are joining a “group” that has access to several different insurers so that they can obtain the best and cheapest coverage available. In reality, the consumer only has access to one insurer.

Even after the companies settled a lawsuit on the issue and were ordered to stop their deceiving practices, they still seem to be operating in the same fashion. According to consumer attorneys, Mega Life and their sister company, Midwest, continue to sell these products after settling a multi-million dollar class action settlement whereby they were ordered to advise of the inner relationships between the holding company, these groups, and the insurance companies, so that people would really understand that the Alliance for Affordable Services, or the National Association of the Self-Employed, are not really independent and that they don’t have the consumers’ best interests at heart.

It’s no secret that those who are self employed have a much harder time finding insurance than those who work for companies that subsidize part or all of their insurance costs. So, when a self employed person finds a “good deal”, they usually jump on it and may end up “skimming” some of the policy details that a traditional Human Resources Manager would explain in an employer-employee relationship. If you’re self employed, make sure you understand your policy’s details and that they correspond with your insurance needs.