After finding that an unlicensed company was selling “unauthorized and deceptive health coverage” to Minnesotans, the Minnesota Department of Commerce’s Enforcement Division has settled with the company, requiring it to leave the state’s insurance market.
The settlement agreement with Strategic Limited Partners LP requires the company to “cease all insurance-related operations in Minnesota” by the end of the year and pay all outstanding claims to its consumers in the state.
The Commerce Department, in a Tuesday news release, said the company sold unauthorized health plans to more than 1,700 Minnesotans, some of whom believed they had been speaking with a MNsure representative.
“Later, consumers discovered that health care providers wouldn’t accept the coverage, and the company often denied or failed to pay claims, leaving consumers with unexpected and sometimes significant medical bills,” the news release states.
In addition to exiting Minnesota’s health insurance market and paying claims, the settlement requires Strategic Limited Partners LP to pay a $290,000 penalty. However, $250,000 of that fine is stayed unless the company violates the settlement, the department said.
Those who purchased coverage through Strategic Limited Partners LP can contact the Commerce Department if they believe they are owed money. Consumers can also verify if a company is licensed to sell insurance through the Commerce Department’s online License Lookup tool.
“This is a cautionary tale,” said Jacqueline Olson, the department’s assistant commissioner of enforcement. “As open enrollment begins, Minnesotans should be extremely careful when selecting health coverage. If it sounds too good to be true, or if the company isn’t licensed in Minnesota, that’s a red flag.”
Open enrollment through Minnesota’s health insurance marketplace, MNsure.org, begins Nov. 1.
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