Consumer Alert: FTC alleges Simple Health sold consumers worthless plans that left people uninsured


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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.  

UPDATE 7/30/19

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)

Arizona Department of Insurance Consumer Protection Division

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Lists insurance companies that are offering health insurance to individuals and families in Arizona in 2020.  Open enrollment starts November 1st and now runs through December 17th, 2019.  Individuals can start shopping for coverage now at or (Spanish)

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As shown in the attached report prepared pursuant to A.R.S. § 20-3118(A), the Department of Insurance received 91 requests for dispute resolution in Calendar Year 2019.  Of those, 53 have been resolved or closed, and health plan enrollees saved $41,538 by submitting their surprise bills for resolution.  

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