Cindy Ehnes, director of the state Department of Managed Healthcare, wrote an article in Capitol Weekly describing how the state will be cracking down on fraudulent discount health plans. The state will be proposing new regulations to license companies, imposing strict consumer protections for those wishing to operate in California. The department issued an alert, warning Californians of deceptive discount health plans and suggesting questions to ask. In 2007, the DMHC received more than 200 consumer complaints about discount health plans, almost one third of which were because the consumer believed the discount plan to be insurance. “In the past month, we have seen a substantial increase in the number of complaints regarding discount plans, so it would appear that some fraudulent companies may once again be marketing heavily in California,” she said.
The alert is available in English and Spanish at (click on the title above).
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