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Health card firms must stop operating in California

San Francisco Chronicle, July 31, 2009

California regulators have ordered two discount health card companies to stop operating in California after the firms failed to get licensed. The state Department of Managed Health Care issued immediate cease-and-desist orders to PrudentChoice and International Association of Benefits. Cindy Ehnes, the department's director, said the action is part of efforts to "rein in operators of discount cards that habitually rip off consumers and lead them to believe they are buying legitimate health coverage." Discount health card companies do not offer health insurance, but provide consumers with cards promising discounted medical services in exchange for monthly fees.