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Unauthorized Health Plan Ordered Out Of Texas

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NU Online News Service, Dec. 16, 11:28 a.m. – The Texas Department of Insurance is continuing its campaign to shut down unlicensed health insurers.

The department announced it has issued an emergency cease-and-desist order directing 33 individuals and entities to immediately halt what it says are unlicensed health insurance operations. The operations marketed coverage to small employers using the name Privilege Care Inc., Moorestown, N.J., the Texas department says.

Privilege Care covered 825 Texas residents, not counting dependents, the department says.

The department alleges that Privilege Care has failed to pay about $7 million in claims, and that some unpaid claims are for medical services provided as far back as 11 months ago.