Health Insurance Innovations To Pay Up $27.5 Million In Latest Settlement Agreement
Health Insurance Innovations has accepted a settlement agreement deal and has promised to pay $27.5 million to end the legal case filed against it, claiming that the company ran a scam in the sales of low-grade insurance plans to customers.
Complainants Sued Health Insurance Innovations For Alleged Misdemeanors
The settlement agreement is a recent development in the Health Insurance Innovations Useless Plans Class Action, brought up against the healthcare industry player by the lead plaintiff Elizabeth E. Belin and others. It argued that the company allegedly violated the Racketeer Influenced and Corrupt Organizations Act by tricking consumers into thinking that they were buying a health insurance plan that covered their medical needs.
It was believed that the accused worked in conjunction with another company called Simple Health Plans LLC to perform the misdeed. It is said that the two were able to cash in around $150 million in marketing and selling practically useless healthcare insurance products to their buyers.
Initial Settlement Details
Besides the payment of $27.5 million as settlement, Health Insurance Innovations has pledged to change its ways.
Major changes include the company halting the sale of almost every limited benefit indemnity health plan product it previously offered.
Moreover, healthcare plan agents will now be required to keep a record of all of the sales calls they make in a bid to monitor and flag if an agent will mislead a customer into buying the healthcare plan they are selling. As an added measure, outside parties will serve as secret shoppers to prevent potential malevolent deeds.
Lastly, Health Insurance Innovations’ official site will be placing adequate information in the form of disclaimers and the like that will help inform site visitors and clients that the limited indemnity health plan offerings the company offers are not in line with the Affordable Care Act.
Editor’s Note on Health Insurance Innovations Useless Plans Settlement 2021:
This settlement report aims to feature the details surrounding the agreement between Health Insurance Innovations and its complainants after the latter filed a class action against the former, stating that the company violated the law by selling low-quality healthcare plans to customers. We also recommend you the Goof Proof insurance lawsuit filed against Bob’s Discount Furniture.
Case Name(s) & No.(s): Elizabeth E. Belin., et al. v. Health Insurance Innovations Inc., et al.; Case No.: 0:19-cv-61430
Jurisdiction: United States (U.S.) District Court for the Southern District of Florida
Products/Services Involved: Low indemnity healthcare plans offered by Health Insurance Innovations Inc.
Allegation(s): The company has tricked customers into buying practically unusable healthcare plans that cost hundreds of dollars.
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