Michigan issues order to company for allegedly selling unlicensed health plans

The Michigan Department of Insurance and Financial Services (DIFS) has issued a cease and desist order against Salvasen Health for allegedly acting in violation of the Michigan Insurance Code.

"DIFS’ regulatory function serves to ensure that Michiganders have safe access to legitimate services, including health insurance, from companies that will be there to pay claims when their policyholders need them,” said DIFS Director Anita Fox. “DIFS is committed to protecting Michigan consumers from companies that operate in violation of state or federal laws."

Salvasen Health is accused of selling health insurance policies to more than 2,000 Michigan residents without proper licensure and also failing to make timely payments on claims. Its website advertises several health insurance plans but lacks any disclaimer stating that it is not licensed to issue plans in Michigan. The company was formed in 2021 as a domestic limited liability company in Texas, and the Texas Commissioner of Insurance took disciplinary action against Salvasen Health for selling policies in the state of Texas without a license earlier this year.

Under Michigan's order, Salvasen Health has 30 calendar days after service to contest the order by requesting a hearing on the allegations. The alleged actions may carry civil fines and restitution paid to those affected by the unlicensed insurer.

Consumers who believe they may have fallen victim to this company should report it to DIFS by calling 877-999-6442 Monday through Friday 8 a.m. to 5 p.m. or online by visiting the department's website.

Consumers who need health coverage for 2022 may be eligible for a special enrollment period through the Health Insurance Marketplace if they've experienced certain qualifying life events, such as the loss of employer sponsored health care. Visit Michigan.gov/HealthInsurance to learn more or call DIFS 8 a.m. to 5 p.m. Monday through Friday at 877-999-6442.