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Sham insurance plan shut down by federal judge in Florida

A federal judge has granted a temporary restraining order halting operations of a Florida company that allegedly collected more than $100 million for worthless health insurance plans from tens of thousands of customers.

The Federal Trade Commission filed a lawsuit Monday seeking to shutter Simple Health Plans LLC and recover money for consumers who were allegedly bilked by the company.

Simple Health Plans has operated a telemarketing operation since 2013, according to the complaint, selling plans across the country that claim to provide comprehensive coverage, including prescription drug benefits and hospital care.

Instead, customers are enrolled in limited benefit plans that often leave them with huge medical bills that they had expected to be covered by insurance.

The company operates under several other names, according to the lawsuit, including Health Benefits One, Health Benefits Center and Simple Insurance Plans. It also falsely claims In some marketing materials to be affiliated with AARP and the Blue Cross Blue Shield Association. Company officials tout their expertise in navigating the Affordable Care Act.

The owner of the company, Steven Dorfman, also is named as a defendant in the lawsuit.

via Politico

#litigation #ACA #FTC

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