37,000 victims still paying $6.3 million monthly for 'scam' health insurance
While the Federal Trade Commission pursues permanent closure of “sham” health insurer Simple Health Plans LLC, nearly 37,000 consumers are left in limbo — paying $6.3 million in monthly premiums for insurance plans the FTC says are nearly worthless.
But the consumer protection agency can’t help the consumers unless and until it convinces a federal judge to keep the Hollywood-based company closed and in a receiver’s custody until the case is resolved.
Simple Health has been shut down since Oct. 31, when it was served with a temporary restraining order.
The FTC is accusing the company of running a boiler room operation that misled tens of thousands of consumers into believing they were buying major medical insurance covering pre-existing conditions, hospital stays, in-network visits to primary care physicians and specialists, prescription drugs, and other services required by the Affordable Care Act.
In reality, the consumers were sold a package of discount plans plus limited-benefit hospital indemnity coverage that paid a maximum of $3,200 a year while Simple Health Plans, its co-founder Steven J. Dorfman, and affiliated companies collected more than $150 million in commissions since 2013, the FTC says.
Read more: https://www.sun-sentinel.com/business/fl-bz-simple-health-37k-victims-paying-6-million-a-month-20181227-story.html
A $3,200 annual limit should cover between 8 and 12 hours at most hospitals.
