State insurance chief A new unauthorized health insurance plan marketed under various names but with similar characteristics to the now-shut down TRG Marketing LLC, is being marketed in a number of western states including Hawaii.
warns of new scam
Metcalf says his office has
received warnings from other
states about provider Chea's planBy Lyn Danninger
ldanninger@starbulletin.comThe new plan is being offered in eight states under various names including Consumer Health Education Association, or Chea, of El Cajon, Calif.; STAT-CARE, also of El Cajon; EOS Health LLC, of Tempe, Ariz.; Benefits Group Inc. of Everett, Wash.; and Peak Benefits Group of Henderson, Nev.
State Insurance Commissioner Wayne Metcalf said yesterday the new plan appears to be aimed at former members of TRG who found themselves without insurance after a federal investigation revealed that the plan was not financially viable.
TRG was the unauthorized health insurer that picked up several hundred new members after the state's Insurance Division seized Hawaii HealthCare Alliance, another unauthorized insurance provider headed by Darren Larson.
It was Larson and his insurance agency, Design Benefits Insurance Services, that later enrolled HHA members in the TRG plan.
Metcalf said it's too early to say whether Larson is associated with the latest scheme.
"We are trying to determine in our investigation whether (Larson) was involved," he said.
In July 2001, the Insurance Division revoked Larson's licenses for his part in the organization and operation of Hawaii HealthCare Alliance and related activities in sales of the TRG plan.
Larson, who was last reported to be living in Texas, agreed to pay a fine of $50,000. He has already paid $40,000 of the fine and has been paying the remaining $10,000 in installments of $500 per month.
Larson, his mother, wife and sister all agreed not to engage in the insurance business in Hawaii ever again. Civil law suits to recover lost money from unpaid claims are still pending against Larson and other organizers of the business.
Metcalf said the Insurance Division began receiving reports about the Chea insurance plan in early December. Insurance regulators in other states confirmed it was another unauthorized health insurance scheme, he said.
Metcalf said he has not determined how many former TRG members could have signed up for the Chea plan but noted that at the time of its shut down, there were approximately 293 Hawaii residents, mostly individuals and small business owners, enrolled in the TRG plan.
The Chea plan is being marketing to former TRG members in Hawaii through direct mailings by an organization in Everett, Wash., named Benefits Group Inc. That organization in turn is connected to Peak Benefits Group Inc. in Henderson, Nev., Metcalf said.
Metcalf again warned consumers to beware of such unauthorized insurance schemes.
"Unfortunately, with little competition in the Hawaii marketplace, we become vulnerable to schemes that take advantage of people looking for affordable health plan coverage," he said.
Metcalf also advised those enrolled in TRG to contact the insurance division at 586-2790.