Michigan orders Salvasen Health to stop selling insurance policies amid licensing concerns
A company offering health insurance has been accused of selling policies to more than 2,000 Michiganders without proper licensure and failing to make timely payments on claims.
The Michigan Department of Insurance and Financial Services said Monday it issued a cease and desist order to Salvasen Health, a Houston-based company, saying it acted in violation of the Michigan Insurance Code.
State officials also are urging consumers with concerns and complaints to report them.
Salvasen Health's website advertises several health insurance plans but lacks any disclaimer stating that it is not licensed to issue plans in Michigan, the state insurance department said.
The company was formed in 2021 as a limited liability company in Texas, and the Texas insurance commissioner also took action against Salvasen Health for selling policies without a license earlier this year.
The Texas Department of Insurance ordered Salvasen Health and its owner and CEO, Barry Jay Glenn, to stop selling unauthorized health insurance and begin an orderly shutdown, according to Texas officials.
In addition to Texas, other states including Wisconsin, Minnesota, Nevada and Massachusetts have received complaints against Salvasen, according to government statements and news reports.
Read more:
Michigan gas prices fall 19 cents in a week, down to average of $4.44 a gallon
Ruling on Michigan tipped wages could be 'massive, fundamental' change to restaurants
Under Michigan's order, Salvasen Health has 30 days to contest the order by requesting a hearing on the allegations. Michigan officials said civil fines and restitution to those affected by the insurer also may be required.
Consumers can report concerns to the insurance department by calling 877-999-6442 from 8 a.m. to 5 p.m. Monday through Friday or online on the state's insurance department website.
Consumers who need health coverage for 2022 may be eligible for a special enrollment period through the Health Insurance Marketplace if they've experienced certain qualifying life events, such as the loss of employer sponsored health care.
Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com.
Signs of a health insurance scam
Medicare and health insurance scams are common, according to the Federal Trade Commission, which urges you to on guard and offers these five tips to help identify unscrupulous operators.
A caller says they’re from the government: Government agencies don’t call people out of the blue to ask them for money or personal information. No one from the government will ask you to verify your Social Security, bank account, or credit card number, and they won’t ask you to wire money or pay by gift card.
You don't need to pay a fee for a new Medicare card. Medicare also will never call out of the blue to say you’ll lose coverage.
Medical discount plans charge a monthly fee for discounts on specific services. They’re not a substitute for health insurance. While some medical discount plans provide legitimate discounts, others take people’s money and offer very little in return.
Don't give personal information in exchange for a price quote. The Affordable Care Act’s official government site is HealthCare.gov. It lets you compare prices on plans, check your eligibility for subsidies. HealthCare.gov only asks for your monthly income and your age for a quote.
Scammers want you to pay for help with the Health Insurance Marketplace. The people who offer legitimate help with the Health Insurance Marketplace — sometimes called Navigators or Assisters — are not allowed to charge you.
This article originally appeared on Detroit Free Press: Salvasen Health ordered by Michigan to stop selling insurance
