State’s taking Strong Actions against Fraudulent Discount Health Cards

• Date: April 05, 2010
• Source: Admin

Fraudulent discount health cards take advantage of vulnerable consumers and should face some of the toughest restrictions in the nation, a top state regulator said Monday.

The cards are advertised as providing discounts on health care bills. But too often, when consumers seek to use them, they find their doctors or pharmacies have never heard of the card, said Cindy Ehnes, director of the California Department of Managed Health Care.

At a news conference Monday in Oakland, Ehnes announced plans to license such companies and to impose other regulations to ensure they deliver on their promises.