THE VALUED VOICE

Vol. 66, Issue 12
Click here to view past issues
Thursday, March 24, 2022

   

OCI Takes Action Against Unlicensed Business Selling Limited Term Health Plans

On March 22, the Wisconsin Office of the Commissioner of Insurance (OCI) announced that Salvasen Health, LLC, would no longer be permitted to issue new policies or renew existing policies in Wisconsin. The action was effective on Jan. 31, 2022. 
 
According to the announcement, Salvasen was not licensed to conduct insurance business in Wisconsin and had been issuing limited benefit health plans which did not meet the coverage requirements of Affordable Care Act (called “minimum essential coverage”) that have been in effect for the past eight years. 
 
The company, based in Houston Texas, agreed to pay a financial penalty of $14,000 and agreed to cease writing and renewing insurance policies in Wisconsin. Other states such as Minnesota, Massachusetts, Colorado and Nevada have taken similar steps to protect consumers.  ​
 
About 900 people in Wisconsin had a Salvasen product at some point, with just over 200 active policyholders at the time the product was terminated. Consumers who have lost coverage as a result will become eligible to enroll in a health plan through the federal exchange marketplace during a special enrollment period. Additional information is expected from the federal government regarding the dates for that special enrollment period. 
 

This story originally appeared in the March 24, 2022 edition of WHA Newsletter

WHA Logo
Thursday, March 24, 2022

OCI Takes Action Against Unlicensed Business Selling Limited Term Health Plans

On March 22, the Wisconsin Office of the Commissioner of Insurance (OCI) announced that Salvasen Health, LLC, would no longer be permitted to issue new policies or renew existing policies in Wisconsin. The action was effective on Jan. 31, 2022. 
 
According to the announcement, Salvasen was not licensed to conduct insurance business in Wisconsin and had been issuing limited benefit health plans which did not meet the coverage requirements of Affordable Care Act (called “minimum essential coverage”) that have been in effect for the past eight years. 
 
The company, based in Houston Texas, agreed to pay a financial penalty of $14,000 and agreed to cease writing and renewing insurance policies in Wisconsin. Other states such as Minnesota, Massachusetts, Colorado and Nevada have taken similar steps to protect consumers.  ​
 
About 900 people in Wisconsin had a Salvasen product at some point, with just over 200 active policyholders at the time the product was terminated. Consumers who have lost coverage as a result will become eligible to enroll in a health plan through the federal exchange marketplace during a special enrollment period. Additional information is expected from the federal government regarding the dates for that special enrollment period. 
 

This story originally appeared in the March 24, 2022 edition of WHA Newsletter