The Minnesota Department of Commerce reached an agreement with Strategic Limited Partners, a company selling what Minnesota called “unauthorized and deceptive” health insurance products, to force it out of the state’s market.
The department said in an Oct. 14 news release that the company sold unauthorized health plans to more than 1,700 Minnesotans. Some customers were under the impression they were enrolling in coverage through MNsure, the state’s health insurance marketplace.
Strategic Limited Partners claimed its plans were governed by federal law, not state regulations. It also allegedly made customers “limited partners” in the business, the release said.
The company will have to cease all operations in the state by the end of the year, notify customers by November, pay outstanding claims and pay a $40,000 fine. Strategic Limited Partners will have to pay an additional $250,000 if it violates the settlement agreement.
Minnesota joins Wisconsin, New Hampshire and Arizona in taking actions against Strategic Limited Partners.
Affected consumers can reach out to the Minnesota Department of Commerce about unpaid claims and can shop for new plans during open enrollment.
