State orders halt to firm's fraudulent insurance
The Alaska Division of Insurance has ordered Signature Health Group/Health Advantage to stop offering health discount plans, and life and health insurance, in the state.
The Florida-based company solicits insurance business in Alaska via the Internet. Though Signature Health Group claims its health discount plans are not insurance, the plans are considered as insurance under Alaska law, according to news release by the state insurance division issued in early May.
"A health discount plan is insurance, on terms that are much less favorable than standard health insurance policies," Linda Hall, the insurance division's director, said in the release.
Hall added that the type of discount plans offered by companies such as Signature Health Group provide consumers with substandard health insurance that does not pay medical claims. At most, the plans discount the full price of doctor and hospital visits.
"Health discount plans often appear less expensive than standard health insurance," Hall said. "But you get what you pay for. The discounts can be insignificant compared to the full medical bills."
The insurance division advises consumers to watch out for the warning signs of fraudulent insurance: extremely low premiums compared to other insurance plans, the plans are only available for one day, and the insurance company and its agents are not licensed in the state of Alaska.
