FTC Suit Halts Bogus Health Insurance Scam
|Targeted News Service|
The settlement orders with Health Care One,
Health Care One and its affiliates allegedly deceived consumers by marketing medical discount plans as government-endorsed health insurance and claiming they would deliver substantial savings on consumers' healthcare costs (http://www.ftc.gov/os/caselist/1023071/100811healthcareonecmpt.pdf). According to the FTC's complaint, filed in
However, the FTC alleged that Health Care One's discount plans were not insurance, were not widely accepted by healthcare providers, and did not provide the promised healthcare savings to consumers.
According to the FTC's complaint, the companies did not inform consumers that their program was not health insurance until after consumers signed up for the program and paid hundreds of dollars in fees. Consumers who subsequently tried to cancel their enrollment found that the Health Care One companies made it difficult or impossible to obtain refunds.
Shortly after the FTC filed its complaint, the Court issued preliminary injunctions against each of the Health Care One companies to halt their deceptive practices (http://www.ftc.gov/os/caselist/1023071/index.shtm) pending trial.
The settlement orders announced today require the defendants to surrender assets including the proceeds from the sale of an
In addition to the companies, the defendants in the case are
NOTE: These stipulated orders are for settlement purposes only and do not constitute an admission by the defendants that the law has been violated. Stipulated orders have the force of law when signed and approved by the District Court judge.
TNS cp -120615-JF78-3911006 StaffFurigay
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