Okla. Orders Companies to Stop Fake Discounts

November 29, 2004

The Oklahoma Insurance Department announced it has ordered three medical discount companies to cease doing business in the state.

Department officials alleged that the companies sold cards that purported to provide discount medical services but that doctors, hospitals and other health care providers had not agreed to give such discounts.

State law requires discount companies to have contracts with health care providers.

Orders signed by Deputy Insurance Commissioner Daryl England were issued against Oklahoma City-based Covenant Benefits Group, Lifeguard Benefit Services of Southlake, Texas, and Quality of Life Health Corp., based in Fairfield, Iowa.

“Not only were these companies victimizing health care providers by claiming they offered a discount without even asking their permission, but also they were preying on hard-working Oklahomans who thought they would get cut rates in return for paying monthly fees,” England said.

England heads the Oklahoma Insurance Department pending the appointment of an interim insurance commissioner by Gov. Brad Henry.

Consumers with questions about their health coverage provider may contact the Oklahoma Insurance Department toll-free at (800) 522-0071, in Central Oklahoma at (521) 2828, or on the Web at www.oid.state.ok.us.

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