Commerce Dept warns of fake insurance agency scam

SAINT PAUL – Minnesota Commerce Commissioner Mike Rothman is alerting Minnesotans to be on guard against a fraudulent employment offer that claims to be from an insurance agency in the state.

In the past week, the Commerce Department has received five complaints and inquiries from Minnesotans who were contacted, via email and phone, by someone claiming to be with “Skyline Insurance” and offering a job re-labeling and forwarding packages to other addresses. The job offer promises as much as $3,500 per month for the work.

There is no insurance business licensed in Minnesota by the name of Skyline Insurance. There is no Skyline Insurance located at the physical address listed in the email, nor does anyone answer at the phone number. The company’s purported federal employer identification number actually belongs to eBay. The company’s website (skyline-ins.com) is fake, too, but with a minimal amount of content to make it look like a legitimate insurance agency.

It is known as “reshipping” and often shows up as a “work from home” opportunity posted on job boards, dating websites or chat rooms. In reality, it is an attempt to lure unsuspecting individuals to participate in a large-scale fraud scheme.

Criminals use stolen credit cards to buy high-priced goods online and have them sent to the U.S. addresses of “reshipping mules,” who repackage the stolen goods and mail it to overseas addresses. Not only do the reshippers get pulled into a crime, they also typically never get paid and, in fact, lose the money they spent on their own for the reshipping.   

Sometimes the scam also involves the victim getting a fake certified or regular check to deposit in their own bank account. They are instructed to use some of it for postage but wire transfer most of it elsewhere. When the bank determines the check is counterfeit or part of a crime, the victim may end up responsible for the full amount of the check along with any bank fees.

A recent study suggests that some 1.6 million credit and debit cards are used to commit at least $1.8 billion in reshipping fraud each year. Many online retailers have stopped allowing direct shipments from the U.S. to Russia, eastern Europe and Africa, citing the high rate of fraudulent transactions. As a result, criminals have resorted to reshipping schemes.

The Commerce Department offers the following tips to help Minnesotans avoid getting lured into a reshipping scam:

Don’t accept or mail suspicious packages. No legitimate business should ask you to accept packages at your address and forward them someplace else, especially a foreign address. 

Protect your money. Be suspicious if you are asked to make any upfront payments, transfer money from your bank account or wire transfer money for the “employer.”  

Safeguard your information. Don’t give out any sensitive personal or financial information that the scammers can exploit. Even if they are not reshipping operators, they may be identity thieves.

Do some research. Simply looking at the company’s website may not be enough because reshipping operators often set up websites that can look legitimate. Check out the company with the Minnesota Commerce Department or the Better Business Bureau.

If it sounds too good to be true, it probably is. An offer to pay $3,500 per month simply to resend packages from your home doesn’t pass the smell test.   

The U.S. Postal Inspection Service also provides advice aboutreshipping scams.

Proposed 2018 health insurance rate information released for MN

SAINT PAUL – Minnesotans can now see proposed 2018 rate information submitted by Minnesota insurers to the Minnesota Commerce Department for individual health insurance plans, including those that will be sold through MNsure.

All insurers that currently offer health plans in Minnesota’s individual market have filed rate proposals for 2018.

The insurers’ rate proposals, which are preliminary and must be reviewed by the Commerce Department, are available on the Commerce website (mn.gov/commerce). Also available are proposed 2018 rates for small group health plans that serve employers with 2-50 employees.

Final 2018 rates will be announced by October 2. The 2018 open enrollment period to buy health insurance begins on November 1 and is scheduled to continue through December 15.

The individual market rate proposals apply only to Minnesotans who directly purchase their own health insurance policies. Most Minnesotans receive coverage from employer-based insurance or public programs such as Medicare, Medical Assistance (Medicaid) and MinnesotaCare. 

As of April this year, about 166,000 Minnesotans have coverage through the individual market.

This year, for the first time, insurers were required to submit two sets of proposed rates: One set with, and one set without, a new state reinsurance program.

Earlier this year, Minnesota enacted a law to create the Minnesota Premium Security Plan. This reinsurance program is designed to help stabilize premiums in the state’s individual market, providing a financial backstop against especially high-cost claims.

Implementation of the reinsurance program is contingent on federal approval, which is pending. The state's application for what is known as a 1332 waiver application was submitted by the Commerce Department to the U.S. Department of Health and Human Services.

“To date, we have received positive feedback from federal officials to get their approval for the reinsurance program,” said Commerce Commissioner Mike Rothman. “We are still waiting to receive that approval and hope federal authorities decide by the end of August in order to help finalize the lower rates with reinsurance for 2018.”

Despite uncertainties about potential Congressional action on health reform, the Commerce Department instructed insurers to prepare their rate proposals based on existing federal laws and regulations that currently apply for 2018.

On behalf of Minnesota consumers, the Commerce Department will conduct a rigorous, thorough rate review of each insurer’s rate proposal.

Rates must be justified both by the benefits that consumers receive for their premiums and by the insurance company’s ability to pay expected medical claims costs based on premium revenue.

Insurers must also comply with state and federal laws that protect consumers, including coverage for pre-existing conditions and free preventive care, the adequacy of the provider network and the procedures an individual must follow to enroll or have a claim paid.

As part of the rate review process, the Commerce Department is accepting public comments on the insurers’ 2018 rate proposals through August 31. Minnesotans can submit comments to healthinsurance.ratecomments@state.mn.us.

Commerce Department Urges Minnesotans to Prepare for Medicare Open Enrollment

SAINT PAUL, MN –The Minnesota Department of Commerce urges seniors to use Medicare Open Enrollment as an opportunity to evaluate their coverage options. The Department reminds seniors that insurance policies can change, making it important to review any notices regarding changes from their insurance companies. Seniors should use open enrollment as an opportunity to reexamine their coverage and find a policy that fits their budget and health needs.

“Open Enrollment is the only time of year when everyone on Medicare can make changes to their coverage for the upcoming year,” said Commerce Commissioner Mike Rothman. “I recommend that seniors carefully review their coverage options. It’s possible to save a lot of money by simply switching to a lower cost Medicare Supplement plan.”

Open Enrollment begins on October 15 and ends on December 7, 2014. New coverage will begin on January 1, 2015. To join in a new plan, seniors can either enroll through Medicare or by calling the new plan. Seniors do not need to do anything if they elect not to make any changes for the next coverage year.

To help Minnesota seniors make informed decisions regarding their Medicare options, the Commerce Department has the following tips and reminders for Medicare Open Enrollment:

MNsure, Minnesota’s Health Insurance Marketplace 

MNsure is for people who do not have health insurance already through a job or government program, like Medicare. MNsure does not change any of the benefits or coverage for seniors who are on Medicare. The enrollment periods for MNsure and Medicare do overlap, so consumers should make certain that the health coverage options are Medicare plans and not plans available through MNsure.

Be on the Lookout for Fraud and Scams 

Seniors need to know that it is illegal to sell seniors a plan through MNsure if the agent or broker knows that their client currently has a Medicare plan. Since the enrollment periods overlap, this may invite more fraudulent activity by suggesting unsuitable products to consumers and seniors need to be aware of their rights.

Seniors need to protect themselves from fraud. Education and getting good help, are the best defenses against becoming a victim - remember that your insurance agent or broker cannot imply that they are endorsed by Medicare, solicit door-to-door, contact you by phone or email (unless the consumer initiated the call), or attempt to sell non-health related products such as life insurance or annuities during educational open houses.

Selecting a Medicare Part D Plan 

Medicare Part D is supplemental coverage offered by private insurance companies that helps pay for prescription costs. Shop around to see which plan is likely to save the most money. Most Medicare Advantage plans include prescription drug coverage.

Shop around for your Medigap Policy 

Medicare Supplement Insurance policies obtained through private insurance companies (also called Medigap) offer coverage and services that are not provided by Original Medicare and premiums can vary widely from company to company - be sure to compare plans and policies. 

Questions about Medicare Open Enrollment? 

·         Visit the Medicare website at www.medicare.gov or call 800-MEDICARE (800-633-4227)

·         Call the Senior LinkAge Line® at 800-333-2433 to select or enroll in a plan

Open Enrollment for Medicare is October 15 through December 7, 2014. For information on special enrollment periods, go to the Medicare Website for Special Enrollment Periods.

The Minnesota Department of Commerce is here to help.

Seniors can visit the Commerce Department’s Medicare Toolkit for more information about Medicare Open Enrollment, insurance FAQs, and tips for spotting and preventing fraud. Consumers should call the Department’s Consumer Services Center at 651-539-1600 or toll-free at 1-800-657-3602 (in Greater Minnesota) if you have any questions or concerns about your insurance agent or if you believe you have been a victim of a scam or fraud.