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Hamm warns North Dakotans about potential health insurance scam
BISMARCK, N.D.-Insurance Commissioner Adam Hamm alerted consumers today that North Dakotans may be victims of a group of companies selling potentially misleading health insurance plans across the nation. 

The products are being disguised as major medical health insurance plans, but in many cases they are actually a medical discount plan, a limited benefit plan or a combination. In at least one state, the products are being sold via fax and telemarketing. 

The Washington State Office of the Insurance Commissioner stated in a recent cease and desist order that "consumers are led to believe that the product offered constitutes comprehensive health insurance, and the bank and the credit card accounts of customers who agree to purchase the product are immediately debited." Several states have issued cease and desist orders against the companies. 

"Consumers should check to see if funds are being withdrawn by an entity listed as ‘ATA-SDS' followed by a number or ‘CITM' or ‘Peoples Healthcare,'" Hamm said. "These listings indicate that a consumer may be dealing with one or more of the entities involved in the scam." 

Several other states are looking into concerns about the following companies: American Trade Association, Association of Independent Managers (AIM Health Plans Inc.), Beema-Pakistan Insurance Company, CEO Clubs, Executive Healthcare, First American Health, Healthcare America, Hudson Valley Consultants, LLC, Incorp. Services, Inc., Insurance Resource Group, Integrated Health Plan Inc., Integrated Insurance Marketing Inc., Metropolitan Business Alliance, Mini Healthcare, National Association of Business Leadership (NABL), Omni Healthcare, Pinnacle Health Solutions, Real Benefits Association, Serve America Assurance, Ltd., Smart Data Solutions, SouthEast Insurance Advisors, LLC, Star Group U.K Ltd., a.k.a. Phoenix Insurance Company, United States Contractors Trust, Viking Administrators LLC, Wilshire Holding, LLC and Worldwide Family Benefits Association, Inc. 

Hamm added that consumers should look over any materials they have received to see if these company names appear on the documents. 

"We will do everything in our power to protect North Dakota consumers," Hamm said. "Please call the Department if you've been contacted by one of these companies." 

The Insurance Department is working to identify North Dakotans possibly affected. 

Several of these companies are being liquidated. If you have had contact with any of these companies, please call the North Dakota Insurance Department at 1-800-247-0560. 


North Dakota Insurance Department
600 E. Boulevard Ave.
Bismarck, ND 58505-0320
Phone 701.328.2440
Toll free 800.247.0560
Fax 701.328.4880

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