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Company Ordered to Cease Doing Business in Nevada:
Medical Discount Plan Not Registered
4/17/06, Carson City, NV – State Commissioner
of Insurance Alice A. Molasky-Arman has ordered American Benefits
PPO of Houston, TX and RSA Marketing of Las Vegas, NV to stop
offering discount health plans in Nevada. Neither company
is registered in Nevada as a medical discount plan, which
is in violation of state law.
Division of Insurance investigators received
information that these entities were offering, marketing and
soliciting medical discount plans through facsimiles. The
advertisement claimed to offer “ulimited PPO savings
nationwide” for $59.95 per month, among other benefits.
“I will not tolerate illegitimate entities
taking advantage of Nevada consumers. It is also unfair to
entities that abide by the law and have registered with the
Division,” said Molasky-Arman.
AB 338, approved by the 2005 Legislature and
signed into law by Governor Kenny Guinn, requires entities
that provide discounts on health care and services to be registered
with the Division of Insurance before conducting business
in Nevada. Medical discount plans typically promise that for
a monthly or yearly membership fee, consumers who enroll in
the plan will save money on health care products and services,
such as prescriptions and doctor visits. Consumers who purchase
a medical discount plan are simply buying a discount for health
care fees. To date, the Division has registered ten medical
discount plans.
Medical discount plans are not insurance, even
though they are frequently confused with health insurance.
Sometimes, plans use marketing ploys and insurance terms to
lead consumers into believing they are purchasing an insurance
policy. Consumers who purchase medical discount plans (provided
the plans are legitimate) will receive discounts for certain
health care services, but are still responsible for all medical
bills.
“Before signing up for a plan or purchasing
a product, consumers are strongly encouraged to check to see
whether the product or company is authorized by the Division,”
said Molasky-Arman.
If, after a holding a public hearing, the entities
are found guilty of operating without proper registration,
the Commissioner may impose administrative fines of $2,000
per act or violation.
To verify whether a company is authorized
by the Division of Insurance, please call statewide toll-free
at 1-888-467-4195, or log on to www.nvinsurancealert.com.
If you or someone you know has been approached by these entities
or if you believe you have been victimized by other insurance
scams, you are encouraged to call the Division of Insurance
at (775) 687-4270 in Carson City, (702) 486-4009 in Las Vegas,
or the statewide toll-free number (888) 872-3234. Additional
tips can be found on the Division’s Web site by clicking
on to http://doi.state.nv.us.
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