ARK. GETS TOUGH ON ILLEGAL PLANS:

Cracking down on illegal benefits plans that have cropped up in his state, Arkansas Insurance Commissioner Mike Pickens revoked the licenses of four insurance agents who sold or were involved in the marketing of an unauthorized health plan and, in a separate action, informed enrollees in Benefit Plans of America Inc. that they should immediately seek to find new dental coverage. According to the Arkansas Insurance Department, Pickens revoked the insurance licenses of former agents Billy Dean Mullins of Conway, Cassondra Ann Kimble, John Anthony Markovich, and Helen Marie Markovich, all of Pocahontas, for their involvement with TRG Marketing LLC. TRG Marketing was ordered in 2002 to cease and desist operating in the State of Arkansas due to the company’s sale of an illegal health care plan. The department denied the company’s claim that the multiple employer welfare arrangement (MEWA) plan was set up pursuant to the Employee Retirement Income Security Act (ERISA) and was therefore exempt from state regulation. As for the dental plans, the insurance department is conducting an investigation into the operations of Benefit Plans of America Inc., which among other things was found to be operating illegally in Arkansas. Pickens said the department has received reports that “indicate the Plan is five months behind in claims payments.” According to a notice sent by Pickens to those enrolled in the plan, the department has learned that Benefit Plans of America Inc. may have been marketed as
a Federal ERISA plan, exempt from state regulation. However, to date, the department has found those claims to be false. Over the past several months a number of illegal health plans have been discovered to be operating in Arkansas.

Topics Arkansas