Department of Commerce and Regulation
For Immediate Release: August 2, 2001
For More Information Contact: Sherry Deaver, (605) 773-3563

Division of Insurance Issues Cease and Desist Order Against Pharmacy Referral Service

(PIERRE) - Darla L. Lyon, Director of the South Dakota Division of Insurance, issued a temporary Cease and Desist Order against National Health Care Discount, Inc. today. The Cease and Desist Order prohibits National Health Care Discount (NHCD) from soliciting its mail order pharmacy referral service in South Dakota as an insurance product. Under the Cease and Desist Order, National Health Care Discount may continue to offer its service to South Dakota residents as long as its service is not represented as an insurance product and neither National Health Care Discount nor its employees represent it as an insurance company. 

A local television station recently aired information regarding National Health Care Discount, stating that the company provides insurance coverage for maintenance prescription drugs by mail. The article was also posted on the television station's website. The television station later retracted their story and issued an apology to its viewers, stating that they received incorrect information. 

Individuals who have been solicited by National Health Care Discount or any of its representatives should be aware that the service is not an insurance policy and is not a replacement for their existing or potential insurance coverage. Anyone who may have questions or concerns is encouraged to contact Sherry Deaver at the South Dakota Division of Insurance by writing 118 West Capitol Ave., Pierre, SD 57501, by calling (605) 773-3563, or by visiting the division’s website.

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