Warning issued on illegal insurance

By Frank Cho
Advertiser Staff Writer

State Insurance Commissioner Wayne Metcalf is warning former customers of closed health insurer TRG Marketing that they are being targeted by an unauthorized health plan.

It is being offered via direct mail under various names, including Consumer Health Education Association (CHEA), based in El Cajon, Calf.; STAT-CARE, also of El Cajon; EOS Health LLC of Tempe, Ariz.; Benefits Group Inc. of Everett, Wash.; and Peak Benefits Group Inc. of Henderson, Nev.

In a letter earlier this month, Metcalf warned former members of TRG to avoid the new plans.

"I strongly recommend that you reject this offer," Metcalf wrote. "The Insurance Division is working closely with regulators in other states to investigate these claims, and has concluded that the letter contains material misrepresentations."

The CHEA plan is only the latest in a growing string of unauthorized health insurance being marketed to Hawai'i residents.

TRG Marketing LLC agreed last month to shut down its Hawai'i health plan after state regulators found the company was selling insurance illegally.

The Indiana company, with 293 Hawai'i customers in a health plan, had never applied for permission to sell insurance in Hawai'i, according to state regulators.

In October 2000 state insurance regulators seized the Hawaii HealthCare Alliance, another unauthorized health insurer targeting small Ha-wai'i businesses and the self-employed.

Customers who enrolled in TRG and health care providers who treated TRG members are being asked to call the Hawai'i Insurance Division at 586-2790 for more information.

The Insurance Division's Website, www.ehawaiigov.org/serv/hils, provides information on whether insurance companies or agents are properly licensed.

Reach Frank Cho at 525-8088 or fcho@honoluluadvertiser.com.