Two Texas-based companies were sued by the state Attorney General's office Wednesday for allegedly defrauding Minnesotans who purchased so-called health discount plans from the firms.
The suits, filed in Hennepin County District Court, allege that the companies "deceptively" sold and marketed the plans as equivalent to comprehensive health insurance policies.
Instead, according to the lawsuit, the plans offered only limited discounts at a small number of health care providers.
More than 4,600 Minnesotans have signed up for the plans offered by Direct Medical Network Solutions, Inc. and Association Healthcare Management, Inc. in recent years, according to the lawsuit. The vast majority have canceled the plans.
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