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California Company Fined For Mailing Misleading 'Medicare.com' Letters To Elderly Minnesotans

MINNEAPOLIS (WCCO) -- The Minnesota Department of Commerce has fined a California-based health insurance agency for mailing hundreds of thousands of misleading letters to elderly Minnesotans.

Officials say the company, eHeathInsurance Services, purchased the domain name "Medicare.com," and under that name, mailed more than 600,000 letters to Minnesotans warning about the discontinuation of their Medicare plans and offering services to secure a new plan.

According to the Commerce Department, the agency branded its letters and website as "Medicare.com," but failed to include that the company was not in fact connected with the government, Medicare or Medicaid.

"Our investigators acted swiftly to bring a stop to the misleading marketing materials from eHealthInsurance," said Steve Kelley, commissioner of the Minnesota Department of Commerce. "We began the investigation upon receiving calls from concerned Minnesotans, and we are grateful for their vigilance and quick action in alerting us to the situation."

Officials say eHealthInsurance Services has been ordered to pay a civil penalty of $50,000 to the State of Minnesota. The agency has also been ordered to edit its website to include a statement clarifying that it is connected to eHealth.

If you believe you may be a victim of a scam, email the Commerce Department here. You can also call 651-539-1600, or 800-657-3602 if you live in greater Minnesota.

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