FTC Halts Purveyors of Sham Health Insurance Plans

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RichardNewman

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Florida-based Simple Health Plans LLC has collected more than $100 million with deceptive scheme targeting Americans in need of coverage

At the request of the Federal Trade Commission, a federal judge temporarily shut down a Florida-based operation that allegedly collected more than $100 million by preying on Americans in search of health insurance, selling these consumers worthless plans that left tens of thousands of people uninsured. Many of these consumers have incurred substantial medical expenses and have been stuck with thousands of dollars in unpaid medical bills.

A federal court temporarily halted the operation pending resolution of the case. The FTC seeks to permanently stop the defendants’ practices and return money to consumers.

In a complaint filed in federal court against Simple Health Plans LLC, the company’s owner, Steven J. Dorfman, and five other entities, the FTC alleged that the defendants misled people to think 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.

Consumers who enrolled reported paying as much as $500 per month for what was actually a
 
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