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Minnesota suing firms that sell discount health cards

Minneapolis Star Tribune, February 11, 2010

More than 4,600 Minnesotans lost millions of dollars when they enrolled in Direct Medical or another firm, Family Care, both based in Texas, said Minnesota Attorney General Lori Swanson, who sued both alleging deceptive marketing. The number of such scams has been growing as more people lose medical coverage through layoffs or cuts in employee benefits, she said. Swanson sued two other companies in 2009 for similar practices involving more than 2,000 Minnesotans. Dozens more are operating in Minnesota, and Swanson said she is investigating another 12 or so of them, the Minneapolis Star Tribune reports.