Montana CSI Joins FTC, State Attorneys General, Insurance Commissioners in Crack Down on Bogus “Medical Discount Plans”

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Bogus Plans Peddled to Uninsured, Uninsurable, Unemployed Consumers

HELENA, Mont. – Operators who scammed people who did not have health insurance – the uninsured, the unemployed and the uninsurable – have been targeted by the Office of the Commissioner of Securities and Insurance (CSI) and a federal/state coalition of law enforcement agents for fraudulently marketing “medical discount plans” as health insurance plans. In addition to CSI, the Federal Trade Commission and law enforcers in 23 other states have filed 50 lawsuits and regulatory actions to stop the scammers’ deceptive practices.

“Medical discounts plans are not health insurance plans and participants do not have the same protections as under licensed health insurance plans. I strongly recommend that you thoroughly look into any plan promising deep discounts for a ‘low’ monthly fee,” said Montana Insurance Commissioner Lindeen.

In Montana, CSI has brought actions against fraudulent medical discount plans, including the American Trade Association and the National Alliance of Associations.

In addition to this case, the FTC filed 3 lawsuits targeting bogus medical discount scams, and Attorneys General and Insurance Commissioners have brought numerous enforcement actions to stop the scammers. They include lawsuits or regulatory actions addressing sham insurance, as well as illegal robo-calls and fax blasting, and licensing violations.

For more information about medical discount plans or for any insurance question, please call CSI at 1-800-332-6148.