Missouri regulators have moved to shut down more than a dozen companies that promise health plans but have allegedly left consumers with thousands of dollars in unpaid medical bills.
The consumer affairs division of the Missouri Department of Insurance demanded that 14 companies and 12 individuals respond to charges that they defrauded Missouri consumers, according to an order from the department filed Monday.
The companies have been ordered to appear at a hearing Feb. 17 to respond to the charges and could face cease-and-desist orders and a $250,000 fine.
The department has received complaints from nearly 150 consumers that paid these companies for services that were advertised as insurance, using phrases like “PPO,” “Group Health Plan” and “dependent coverage.”
Many of the companies send faxes promising low-cost health insurance.
Now the companies face fines and closure, state regulators said.
The state initiated administrative enforcement proceedings against Affinity Group Benefits Association Inc.; American Trade Association; Americans for Affordable Healthcare Inc.; Beema-Pakistan Assurance Ltd. a/k/a Beema-Pakistan Co. Ltd.; Key Benefits Administrators Inc.; National Alliance of Associations; National Trade Business Alliance of America; Peak Membership Alliance; Professional Benefits Consultants a/k/a PBC Direct a/k/a Professional Benefit Consultants of Del. Inc.; Real Benefits Association; Serve America Assurance Ltd. a/k/a Serve America Assurance Ltd. Co. a/k/a Serve America Assurance; Smart Data Solutions LLC; Spencer & Associates LLC; Christopher Ashiotes; Richard Bachman; Earnest Beall; David Clark; James Doyle; Obed Kirkpatrick; Bart Posey Sr.; Thomas Sullivan; William Worthy; and Colin Youell.
“State law provides severe punishment for any company selling unauthorized health plans in Missouri,” said John Huff, director of the Missouri Department of Insurance, Financial Institutions and Professional Registration, in a statement. “Many Missourians found out the hard way that these plans are not the comprehensive insurance they signed up for. Instead, some of them are left with massive unpaid medical bills.”
One consumer faced an unpaid medical bill of more than $60,000 after getting treatment in Hannibal, Huff said. Another southwest Missouri consumer paid nearly $2,000 for membership, then found out it didn’t even cover flu shots. Others told state regulators that they couldn’t get refunds after canceling their coverage.
