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States fret over health insurance scams

USA Today, April 13, 2010

Bogus health plans that advertise comprehensive coverage at bargain prices are on the rise, luring desperate consumers to pay for policies that won't cover their medical bills, state insurance commissioners say. In recent weeks, Missouri regulators have cracked down on 13 companies. California has ordered firms to stop selling misleading and unlicensed health discount cards. Tennessee regulators have seized a company they allege has collected more than $14 million from people across the U.S., then stranded them with unpaid bills, USA Today reports.