Firm ordered to stop selling benefit plans

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An Indiana company that administers medical benefit plans for hundreds of North Dakota customers has been ordered to stop selling the plans, Insurance Commissioner Jim Poolman said.

An Indiana insurance regulator said the company, My Smart Benefits Inc. of Hammond, Ind., may have gone out of business.

Customers of My Smart Benefits have complained of being kept waiting more than three months for dental expense payments, Poolman said Monday.

About 100 Minot city employees are among the customers of My Smart Benefits. The city attorney, Nevin Van de Streek, said Monday that workers are waiting for about $12,000 in payments for dental care.

Under the program offered to Minot city workers, employees were supposed to pay for dental work themselves, with My Smart Benefits reimbursing a portion of their costs later. Last week, the city sent a notice to My Smart Benefits to cancel its plan.

"This company has been extremely dilatory in paying claims," Van de Streek said.

Robert Frantsvog, Minot's city auditor, said the benefit program is voluntary. About 100 of the city's 300 employees use it, he said.

Scott Moum, business manager for Minot's public schools, said 370 of about 950 eligible employees had been signed up for the district's dental plan before Oct. 1. The district dropped its business with My Smart Benefits and has found another provider, Moum said.

"I know there are still some claims outstanding from this summer, that haven't been paid by them," Moum said.

Poolman on Monday ordered My Smart Benefits to stop selling new benefit plans in North Dakota, and to keep managing its existing plans.

However, the company may no longer be in business. Telephone calls and e-mail messages to its offices and to various company executives were not answered on Monday.

Greg Thomas, chief deputy commissioner at the Indiana Department of Insurance, said he had been told My Smart Benefits shut its doors last week.

Poolman said he has asked Attorney General Wayne Stenehjem to look into whether the company has violated any criminal laws.

The U.S. Labor Department also is investigating, Poolman said.

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