North Dakota's insurance commissioner on Monday ordered an air ambulance company to stop selling subscriptions to North Dakotans.
nsurance Commissioner Jon Godfread issued a cease and desist order against AirMedCare Network. Godfread alleges the network of affiliated air ambulance providers is selling air ambulance subscriptions to North Dakotans in violation of a 2017 state law.
"The complete disregard for North Dakota law displayed through the business practices of AirMedCare Network will not be tolerated," Godfread said in a statement. He said he has given the network "every opportunity to correct this malpractice," and "yet they've responded by essentially stating that North Dakota law isn't valid."
North Dakota banned the sale of these subscription plans in 2017 because they've been shown to be predatory, Godfread said. He contends AirMedCare has been aggressive in selling the subscriptions.
AirMedCare contends it stopped selling the memberships in North Dakota in 2017 when the state law went into effect, but that its memberships are advertised on Facebook and online. The network's general counsel, Thomas Cook, says the network has asked the state to describe what it wants the group to do with its online ads.
Last year, a federal judge invalidated a portion of the law that protects North Dakotans from receiving balance bills from air ambulances. But the provision prohibiting the sale of air ambulance subscriptions remains valid and enforceable, Godfread said.