Minnesota Attorney General Suing Firms Selling Discount Health Insurance Cards
The Minnesota Attorney General is suing two Texas-based companies that sell discount health insurance cards, claiming they used deceptive marketing practices, according to a release from the Attorney General.
Attorney General Lori Swanson's said Direct Medical Network Solutions and Family Care misrepresented their products as traditional health insurance, charged "premiums" of as much as $460 a month, but provided only limited discounts at certain healthcare providers.
Both companies generally refused to send consumers written materials explaining their products before purchase, and when consumers received the materials afterwards, they often quickly cancelled the plans.
Ms. Swanson said a health discount plan:
- does not provide insurance protection because it is not an insurance policy.
- won't pay providers on behalf of patients, as health insurance does.
- offers only limited discounts, at best, from the retail price providers charge.
Read the Minnesota Attorney General's release on discount health insurance cards.
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