AirMedCare Network, which is part of Air Medical Group Holdings, has been issued a "cease-and-desist" order by North Dakota insurance regulators for selling illegal air ambulance subscriptions, The Dickinson Press newspaper said. The US state bans the sale of such plans because it believes them to be predatory.
Announced on February 10 by Insurance Commissioner Jon Godfread, it alleges that AirMedCare continued to sell the subscription in violation of a law passed in 2017. "The complete disregard for North Dakota law displayed through the business practices of AirMedCare Network will not be tolerated," said Godfread in a statement. "Since this issue has come to my attention, I have given them every opportunity to correct this malpractice. They have been informed that they are breaking the law and yet they've responded by essentially stating that North Dakota law isn't valid."
Contacted by the newspaper about the cease-and-desist order, AirMedCare said that it's "in compliance with North Dakota's regulation prohibiting air ambulance memberships, even though we disagree with it. We do not conduct any targeted online or direct mail marketing to North Dakota residents. The legality of the North Dakota regulations remains the subject of pending federal litigation."
AirMedCare Network's air ambulance services in North Dakota include Guardian Flight (Anchorage Ted Stevens) and Valley Med Flight (Grand Forks).
