FTC-PR-240209-2
Date Released: 
February 9, 2024
Headline:
FTC-PR-240209-2 – FTC Obtains $195 Million Judgment, Permanent Ban on Telemarketing and Selling Healthcare Products Against Simple Health Over Charges It Sold Sham Health Insurance – FTC charged that Simple Health claimed to offer health care insurance with comprehensive coverage and instead effectively left most consumers uninsured
Excerpt:
The Federal Trade Commission has obtained a $195 million judgment against Simple Health Plans LLC and its CEO Steven J. Dorfman over charges they duped consumers into signing up for sham healthcare plans that did not deliver the coverage or benefits they promised and effectively left consumers uninsured and exposed to limitless medical expenses.
In granting the FTC’s motion for summary judgment, the Federal District Court in the Southern District of Florida also banned Simple Health, five related entities and Dorfman from telemarketing and from marketing, promoting, selling or offering any healthcare products.
“Simple Health preyed on consumers by selling them bogus health care insurance that cost them thousands of dollars for ‘benefits’ that in fact left consumers unprotected,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “We are pleased the court recognized this blatant bait and switch and ordered the company and its CEO to turn over the money they bilked from consumers.”
In a complaint filed in 2018, the FTC said that Florida-based Simple Health misled people into thinking they were buying comprehensive health insurance that would cover preexisting medical conditions, prescription drugs, primary and specialty care treatment, inpatient and emergency hospital care, surgical procedures, and medical and laboratory testing. In reality, most consumers who enrolled reported paying as much as $500 per month for what was actually a medical discount program or extremely limited benefit program that did not deliver the promised benefits and often left consumers with thousands of dollars in uncovered medical bills, or worse yet, unable to get necessary healthcare.
https://www.ftc.gov/news-events/news/press-releases/2024/02/ftc-obtains-195-million-judgment-permanent-ban-telemarketing-selling-healthcare-products-against
[Date Accessed: 3/5/2024]
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