Texas-based health insurance company fined more than $500,000 for fraudulent coverage

A Texas-based insurance company was ordered to pay $553,000 in fines after selling health insurance plans while being unlicensed to do so, according to the Minnesota Department of Commerce.

The department said Salvasen Health, its affiliate Triada and owner Barry Glenn were fined and ordered to stop doing business in Minnesota.

Consumers that filed complaints with the Department of Commerce about Salvasen cited being denied coverage in situations that Salvasen said would be covered, paying thousands out of pocket for medical charges and receiving no response from Salvasen when contacted about problems with coverage, according to the Department of Commerce.

Minnesota is just one of several states to take action again Salvasen. The department said businesses that sell health insurance in Minnesota are required to be licensed by the state in order to guarantee they have enough money to finance medical claims. They are also required to file health insurance plans for approval by the Department of Commerce.

“This is an unfortunate situation where an unlicensed company marketed unapproved health plans in Minnesota, and consumers purchased those products,” said Commerce Commissioner Grace Arnold. “We want consumers to know you have protections under state laws when you purchase or use health insurance.”

The Department of Commerce is encouraging Minnesotans who need health insurance to look for coverage through MNsure. Plans sold on MNsure.org are guaranteed to cover a set of essential health benefits and offer important consumer protections. MNsure also offers these tips to avoid scams targeting Minnesotans when buying health insurance.

Minnesota consumers with questions, concerns, and complaints about insurance can contact the Minnesota Department of Commerce Consumer Services Center at consumer.protection@state.mn.us or by phone at 651-239-1600 or 800-657-3602.