Minnesota Residents Report Losses with Unlicensed Health Coverage Provider

Minnesota regulators are warning residents about Strategic Limited Partners, a company accused of selling unauthorized health coverage plans and failing to pay medical claims, leaving some customers thousands of dollars out of pocket.

Two Minnesotans, identified as R.W. and M.W. in state documents, reported paying over $7,000 to Strategic Limited Partners before canceling their plans due to the company’s failure to process claims. They were reportedly unaware they had been designated as employees or limited partners of the company. Another customer, M.T., stated that Strategic Limited Partners paid less than $2,000 of her $40,000 in medical bills over a six-month period, and other purchasers reported similar issues with claim payments and facing collection efforts despite having coverage.

“This is a cautionary tale,” said Jacqueline Olson, an assistant commissioner of enforcement for the Minnesota Department of Commerce, in a statement released today. “As open enrollment begins, Minnesotans should be extremely careful when selecting health coverage,” Olson continued. “If it sounds too good to be true, or if the company isn’t licensed in Minnesota, that’s a red flag.” This situation highlights the importance of verifying the legitimacy of health insurance providers before enrolling in a plan.

Regulators in other states have already taken action against Strategic Limited Partners; Wisconsin issued a cease-and-desist order last year for the sale of unauthorized insurance, and New Hampshire banned the company from marketing its services in December. The National Association of Insurance Commissioners provides resources for consumers to verify insurance licenses and file complaints.

The Minnesota Department of Commerce is continuing its investigation and urges anyone who has purchased a plan from Strategic Limited Partners to contact the department with any concerns.