Consumer Alert: FTC alleges Simple Health sold consumers worthless plans that left people uninsured
Phoenix, AZ—The Arizona Department of Insurance (ADOI) wants to make citizens aware of a recent Consumer Alert issued by the Federal Trade Commission (FTC) regarding Simple Health Plans, LLC. According to the release, tens of thousands of consumers who bought medical discount plans from Simple Health Plans, LLC that were deceptively marketed as comprehensive health insurance, and who are still currently paying monthly fees will receive notices informing them that:
1) they do not currently have comprehensive health insurance and if you get sick or have to go to the hospital, you may have to pay almost all of your medical bills, but
2) they can enroll in a comprehensive plan during a special enrollment period.
The Centers for Medicare and Medicaid (CMS) has made a special enrollment period (SEP) available for consumers sho bought health insurance plans from Simple Health Plans LLC. The SEP will run from July 1, 2019, until September 4th, 2019. Eligible consumers should have received a notice from Health Insurance Innovations advising them of the availability of this SEP. CMS will evaluate an individual's eligibility for the SEP using Simple Health Plan enrollment information that has been provided by Health Insurance Innovations.
Simple Health claimed to offer comprehensive health insurance or PPOs that would cover many medical needs, but instead sold only medical discount memberships, limited benefit plans, and other products that provide a small reimbursement or discount for a few services.
Consumer enrolled with Simple Health Plans do not have comprehensive health insurance. If they get sick or need to go to the hospital, they may have to pay almost all their medical bills.
To learn more about SEPs, follow this link.
To learn more on the Federal Trade Commission lawsuit against Simple Health, follow this link.
For further information and helpful links with the FTC, please see the Press Release issued by the FTC.
Federal Trade Commission (FTC)
- Order Authorizing Notification to Existing Customers
- Submit a Consumer Complaint to the FTC: www.ftc.gov/faq/consumer-protection/submit-consumer-complaint-ftc
Arizona Department of Insurance Consumer Protection Division
- Visit https://insurance.az.gov/consumers
- Or call the ADOI’s Consumer Protection Hotline at 602-364-2499, or 1-800-325-2548 if calling within Arizona but outside Maricopa County.
The Arizona Department of Insurance is a state agency dedicated to protecting Arizona citizens and businesses by promoting a safe, strong, innovative and competitive insurance marketplace.
We are aware of a phishing scam targeting insurance professionals claiming that the National Association of Insurance Commissioners received a complaint that the professional submitted a falsified claim. This fraudulent email displays the NAIC and CIPR logos, can originate from what appears to be an naic.org or gmail.com email account, and instructs the recipient to click on a link to download the complaint notification.
Certain antivirus products will detect this as a malicious email. If you receive a similar email and have any concerns, contact the NAIC Service Desk at (816) 783-8500 or [email protected].