Montana State Auditor and Commissioner of Insurance James Brown said his office is taking action against Strategic Limited Partners, according to a May 4 news release.
Some consumers were under the impression that SLP offered ACA-approved plans. On April 1, Mr. Brown issued a cease-and-desist order, prohibiting SLP’s operations in the state. SLP replied by saying it had stopped issuing policies in the state.
The commissioner’s release said SLP’s practice of referring to consumers as “limited partners” or “employees” is “troubling and deceptive,” allowing the company to dodge consumer-protection regulations.
A Montanan recently complained after SLP refused to cover a $90,000 hospital bill. In another case, a church congregation agreed to offer a pastor health insurance through SLP, but the church only learned of the plan’s limited scope after the pastor incurred steep unpaid bills.
“This experience has been a source of stress for the consumer’s family, the congregation and the authorized representative who purchased the policy offered by the church,” Mr. Brown said. “They discovered through their own diligent research that other legal action has been taken against SLP.”
Minnesota forced SLP out of its market in October after the company sold unauthorized health plans to more than 1,700 Minnesotans.
Along with the local concerns, 136 complaints had been filed with the Better Business Bureau over the past three years, regarding failures to pay claims, a lack of communication and misrepresentations of plans.
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