DMHC Cracks Down on Companies That Offer Discount Health Cards
On Monday, the state Department of Managed Health Care ordered Healthcare One and its affiliates to stop issuing cards for discount health plans in California or face legal action, the San Francisco Chronicle reports.
The department accused the firm of fraudulently claiming thatÂ it offered health insurance benefits.
Discount health plan programs typically offer medical services at reduced rates in exchange for member enrollment and monthly fees. Some of the programs offer limited benefits and falsely claim that they have relationships with physicians.
DMHC's complaint accused Healthcare One of marketing itself as a federal discount health care program because it used images of the White House in its advertisements.
DMHC Cracking Down on Fraudulent Firms
Monday's complaint is DMHC's eighteenth action against discount health plan programs, which have largely gone unregulated in the state.
Monday also marked the final day of public comment before the department finalizes rules for how it will oversee such companies (Colliver, San Francisco Chronicle, 2/23).Â ÂDMHC director Cindy Ehnes said the department plans to license discount health programs and introduce regulations to ensure that they are abiding by certain standards (Kleffman, Contra Costa Times, 2/22). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.