FTC gets health insurance hucksters shut down
It’s sign-up time for health insurance, and the state’s insurance office is offering some advice to keep consumers from purchasing plans that might not deliver as promised.
It comes after the Federal Trade Commission filed a complaint against a Hollywood, Fla., company, claiming it left tens of thousands of customers without the comprehensive health insurance they thought they had purchased.
The complaint accused Simple Health Plans LLC, owner Steven J. Dorfman and five other entities of falsely claiming their products provided government-sponsored health insurance policies, such as those offered under Medicare and the Affordable Care Act.
A federal judge has temporarily shut down the company.
The FTC alleges the firm collected more than $100 million in premiums through websites, including one called trumpcarequotes.com, and hired telemarkers to reach consumers online and by phone. Its advertising materials falsely claimed to be affiliated with AARP and the Blue Cross Blue Shield Association, the FTC said.
Simple Health’s products, the FTC complaint says, do not provide comprehensive insurance or the benefits promised. In particular, the plans don’t cover pre-existing conditions or prescription drugs, the FTC says.
A representative of the company could not be reached for comment.
Here is some advice, from Heather Widler of the state insurance superintendent’s office and the FTC:
Research the plan to see if it really is insurance. You can find out if a company or agent is licensed in New Mexico by going to osi.state.nm.us. If you suspect a scam or you’re not getting the benefits you signed up for, contact the same website and click on “File complaint.”
Ask the company for details in writing. If it won‘t give you the fine print, walk away.
A red flag that indicates a plan is not ACAcompliant is an agent who asks a lot of medical questions. That’s because the act requires coverage for pre-existing conditions. Other red flags are extra charges for pregnancy-related care or so-called “lifetime maximums,” Widler said.
Do an online search with the company name and the word “complaint.” It looks like the scheme of using a fake or obsolete website to sell cars is catching on in New Mexico.
The Better Business Bureau is warning that an imposter has set up a website in the name of a real company that went out of business last spring. The company is Complete Auto Sales LLC, and the website is www.completeautosaleswest.com, the BBB says.
The owner of the business says he has not resumed operations and that he has no affiliation with the imposter operation, which is selling and displaying cars on the website.
The BBB says the address listed on the website is a vacant lot. A recording on the phone number listed says it has been disconnected.
A similar scheme involved former Mountainair car dealer Steve Ivey, who learned his website was taken over by scammers to dupe people into buying high-end cars. It happened after he had retired and closed the business.
The BBB reminds consumers to check with bbb. org before doing business with a company, especially when it involves an online purchase.
Ellen Marks is assistant business editor at the Albuquerque Journal. Contact her at emarks@abqjournal.com or 505-8233842 if you are aware of what sounds like a scam. To report a scam to law enforcement, contact the New Mexico Consumer Protection Division toll-free at 1-844-255-9210.