Poolman Orders Arizona Company to Stop Doing Business in N.D.

December 28, 2006

Commissioner Jim Poolman today issued a Cease and Desist Order against Global Net Health Care, an Arizona-based medical discount plan company. Poolman said that the company has recently advertised in North Dakota in violation of a state law aimed at curbing abuses in the marketing of discount medical plans.

“Discount plans are not insurance. We will not tolerate deceptive sales practices or any attempt to mislead North Dakota Insurance consumers,” Poolman said.

Medical discount plans offer discounts on medical services in exchange for extremely low monthly fees. However, there is no guarantee that healthcare providers are available in their community or surrounding area. In addition, the advertising for these plans typically does not disclose that the consumer is responsible for paying the medical bills directly. Further, consumers may experience some difficulty getting a refund from the company if they decide later that they don’t want to be part of the plan.

“My order alleges that Global Net Health Care’s advertisement misled consumers,” Poolman said. “If is seems too good to be true, it usually is,” Poolman added.

Anyone who is thinking of purchasing a discount plan or any insurance policy should stop, call the North Dakota Insurance Department, and confirm that the plan they are purchasing is legitimate insurance. Consumers can call the Department’s Consumer Hotline at 1-800-247-0560.

Source: North Dakota Insurance Department

Topics Arizona North Dakota

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