State targets health insurance scammer
State regulators are cracking down on a Tennessee company providing fraudulent health insurance plans and have ordered the company to pay $1.2 million in penalties.
Insurance Superintendent Mila Kofman issued a final cease and desist order Friday against American Trade Association to bar it and its subsidiaries, including Smart Data Solutions, from operating in the state and ordering it to pay $1,161,600 in outstanding medical bills and premium refunds for its fraudulent health plans, according to a press release. ATA and its subsidiaries have collected more than $22 million nationwide from health insurance premiums, but were ordered into liquidation last month by a Tennessee judge after the court found the companies owe $7 million in medical claims, but have only $2.1 million in assets.
Several states have issued cease and desist orders against the company for selling unlicensed products, having unlicensed agents and not adequately paying medical bills. Kofman issued an emergency cease and desist order last month. "The reality is that they provide no real insurance coverage." She said the state will work with Tennessee officials to ensure Maine consumers receive "their fair portion from any available assets to help pay for outstanding medical bills," according to the release.
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