Without regulation of health insurance sales, we're at the mercy of Beema-Pakistan

On Friday, the Florida Office of Insurance Regulation issued cease-and-desist orders against 12 companies and individuals who have been selling limited-benefit plans to 2,500 Floridians who thought they were buying actual health insurance.

Most of the accused are in other states; they used blast faxes to sell to Floridians, and presumably to others. This offers a glimpse of what we'll see more of if health insurance is allowed to be sold across state lines without strict regulation.

The company at the hub of the sales, says OIR, is based in Karachi, Pakistan. Subsidiaries and affiliates of Beema-Pakistan all have solid names -- Serve America Assurance LTD, Smart Data Solutions LLC, American Trade Association Inc. -- which made it easier to fool people who were desperate to find affordable health coverage.

The idea behind letting insurers sell across state lines makes sense, up to a point; it would give consumers more choice of insurers, which should provide some competition and theoretically restrain rate hikes. But the only way it will be successful is to make sure the insurers are selling valid products.

President Obama's proposal for health reform does not include freedom for insurers to sell products across state lines. But Republicans are expected to push for it at the summit on Thursday. 

Whatever they do, they must not leave the public unprotected against companies like Beema-Pakistan.

--Carol Gentry, Editor, can be reached at 727-410-3266 or by e-mail.