Okla. Commissioner Orders Business to Stop Selling ‘Health Care’ Plan

January 20, 2006

Oklahoma Insurance Commissioner Kim Holland issued a Cease and Desist Order to PrimeStar Healthcare for selling a “health care plan” in Oklahoma via facsimile advertisements and telephone sales.

PrimeStar failed to register in Oklahoma as a discount medical plan organization, violating state law, the Oklahoma Insurance Department said.

The action resulted from a facsimile that was received by the department. The advertisement alleged to offer “open enrollment with no health questions, “$89.95 per month,” among other claims and inducements. Upon investigation by the department’s Anti-Fraud Division it was found that the company is not registered with the Oklahoma Insurance Department as a discount medical plan organization as required by law.

The order states the company has engaged in a course of conduct designed to circumvent and avoid regulatory oversight by the Commissioner as well as misrepresented the existence of authorized plans, used fraudulent or dishonest practices and demonstrated untrustworthiness in the conduct of business within the state.

“Consumers should be extremely cautious when they are buying discount medical plans. We encourage Oklahomans to call and verify that a company is legally doing business in the State before any money or information is exchanged,” said Holland.

If PrimeStar violates the cease and desist order, Holland may impose a penalty of $25,000 for each act of violation or force them to pay back Oklahoma residents damaged by the violation.

To verify the status of a company with the Oklahoma Insurance Department or if you believe you or someone you know is a victim of insurance fraud or a scam, please call the Oklahoma Insurance Department at (405) 521-2991 or statewide toll-free at (800) 522-0071.

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